Basic Energy enters into $150 million ABL revolving facility

By Sarah Lizee

Olympia, Wash., Oct. 10 – Basic Energy Services, Inc. entered into a new $150 million asset-based lending revolving credit facility with Bank of America, NA as administrative agent on Oct. 2, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus a margin that ranges from 175 basis points to 225 bps, based on average daily availability. Interest is initially Libor plus 200 bps.

Principal amounts outstanding will be due and payable in full on the maturity date, which is five years from the closing of the facility, provided that if the company’s $300 million of 10¾% senior secured notes due 2023 have not been redeemed by July 3, 2023, then the maturity date will be July 3, 2023.

The facility includes borrowing capacity for letters of credit of up to $50 million and for borrowings on same-day notice under swingline loans subject to a sublimit of the lesser of $15 million and the total commitments of the new ABL lenders.

The facility also provides capacity for base rate protective advances up to $10 million at the discretion of the administrative agent and provisions relating to overadvances.

Merrill Lynch, Pierce, Fenner & Smith Inc., PNC Capital Markets LLC and UBS Securities LLC are joint lead arrangers and bookrunners. UBS is the syndication agent and PNC Bank is the documentation agent.

The new ABL revolver replaces the company’s existing ABL revolver dated Sept. 29, 2017.

Basic Energy Services provides well site services and is based in Fort Worth.

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