Flotek amends credit facility via PNC to bring capacity to $75 million

By Jennifer Chiou

New York, Dec. 28 - Flotek Industries, Inc. announced an amendment to its credit facility with PNC Bank, expanding the size to $75 million.

The amendment also brought the maturity date to Dec. 26, 2017 and provides capital to refinance the company's outstanding convertible notes as well as reduce the cost of current borrowings.

"As we conclude 2012, Flotek could not be more pleased to complete this important step in our financial evolution and quest for greater financial strength and flexibility," John Chisholm, chairman, president and chief executive officer of Flotek, said in a press release.

"With nearly $30 million of cash on our balance sheet today, Flotek is well positioned to finish the year in one of the strongest financial positions in the history of our company, a testament to the hard work and dedication of the entire Flotek team over the past 12 months."

Flotek has access to a $50 million revolving credit facility, an increase of $15 million, and PNC is providing a $25 million term loan to be used to refinance the convertible notes by mid-February.

Borrowings will bear interest at Libor plus 150 basis points to 250 bps.

Flotek is a Houston-based developer and distributor of oilfield technologies, including specialty chemicals and down-hole drilling and production equipment.

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