Flotek to swap $40 million 5.25% convertibles for new notes, shares

By Devika Patel

Knoxville, Tenn., April 1 - Flotek Industries, Inc. said it executed an agreement under which its lenders agreed to exchange up to $40 million of the company's convertible senior notes for new convertible senior secured notes and common shares.

The 5.25% convertible senior notes due 2028, which were issued in February 2008, will be swapped for new 5.25% convertible senior secured notes due 2028 at a rate of $900 of new notes for each $1,000 of old notes. In addition, investors will receive $50 in common shares.

The new notes have the same interest rate, conversion rights, conversion rate, redemption rights and guarantees as the old notes. In addition, they are also secured by a second-priority lien on substantially all of the company's assets.

The company expects to issue up to 1,568,867 shares to satisfy the stock component of the exchange.

FIG Partners, LLC Energy Research & Capital Group was Flotek's financial advisor on the note exchange.

Flotek is a Houston-based oil and gas driller.

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