Carbo refinances bank borrowings via $65 million 9% loan with Wilks

By Devika Patel

Knoxville, Tenn., March 3 – The week ended with one private placement issue announced. Houston’s Carbo Ceramics Inc. announced that it refinanced its existing bank debt with a $65 million debt placement with the Wilks Brothers, LLC.

The financing includes an initial funding of $52.7 million plus an additional $12.3 million to be released after certain conditions have been met. The 9% loan gives Carbo the option to make payment-in-kind at 11% interest during the first two years of the loan and has a make-whole call option for the first three years.

The investor received warrants for 523,022 shares, each exercisable at $14.91.

Of the proceeds, $52.7 million was used to pay off Carbo’s bank debt, and the remainder is expected to be used for working capital and general corporate purposes.

Carbo focuses on integrating technologies to produce engineered solutions in its design, build and optimize the frac technology businesses.

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