Flotek reveals investors, details about 5.25% convertibles exchange

By Angela McDaniels

Tacoma, Wash., April 6 - Flotek Industries, Inc. disclosed further details about the exchange agreement reached with some holders of its 5.25% convertible senior notes due 2028 that it announced on April 1.

Whitebox Advisors, LLC and Gates Capital Management exchanged $40 million principal amount of the convertibles for $36 million principal amount of new 5.25% convertible senior secured notes due 2028 and 1,568,874 shares of the company's common stock, according to an 8-K filing with the Securities and Exchange Commission.

The investors received $900 of new convertibles and $50 of shares for each $1,000 of old convertibles.

The exchange happened on March 31.

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

The initial conversion rate is 43.9560 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $22.75 per share.

The number of shares issued was determined based on the greater of 95% of the volume-weighted average price of the company's stock for the preceding 10 trading days and the closing price of the stock on the day before the closing.

Flotek is a Houston-based oil and gas driller.

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