1. KLX refinanced $232 million of senior secured notes due 2030. 2. New ABL credit facility of $125 million committed, due 2028. 3. The refinancing strengthens KLXE's financial position and operational flexibility.
The refinancing extends debt maturity and lowers immediate financial burdens, paving the way for potential growth, similar to past refinancings in the sector that led to stock price increases.
Refinancing reduces financial risk and prepares KLXE for future investments, enhancing investor confidence and potentially driving stock price upward.
The newly structured debt allows for better capital allocation over several years, facilitating growth initiatives that could positively impact KLXE’s bottom line and stock performance.
KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") announced today that it has closed on refinancing its existing 2025 senior secured notes by issuing approximately $232 million of senior secured notes due March 2030 together with warrants to purchase common stock of the Company. The Company also announced it has closed on its new ABL credit facility due March 2028 with a $125 million commitment, a first-in-last-out facility with a $10 million commitment, and a committed incremental loan option with a $25 million commitment.
KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, production, and intervention activities for technically demanding wells from over 50 service and support facilities located throughout the United States. KLX's complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair and maintenance capabilities. More information is available at www.klx.com.
KLX Energy Services
Keefer M. Lehner, EVP & CFO
(832) 930-8066
[email protected]
Dennard Lascar Investor Relations
Ken Dennard / Zach Vaughan
(713) 529-6600
[email protected]
SOURCE KLX Energy Services Holdings, Inc.