Flotek releases more details on amendments to revolver, term loan

By Marisa Wong

Madison, Wis., May 13 - Flotek Industries, Inc. gave more information on the previously announced amendment to its credit facility with PNC Bank, NA in an 8-K filed Monday with the Securities and Exchange Commission.

The term of the credit agreement was extended to May 10, 2018.

Flotek increased its term loan to $50 million from $25 million and its revolving facility to $75 million from $50 million.

Interest on revolving loans is equal to Libor plus 150 basis points to 200 bps, and interest on term loans is Libor plus 225 bps to 275 bps. The interest rate is based on the company's maximum revolving advance limit.

Under the amendment, the company is required to make principal payments from excess cash flow up to a maximum of $3 million annually.

As noted before, the size of the facility was increased in connection with the company's definitive agreement to acquire all of the outstanding stock of Florida Chemical Co., Inc.

The company amended and restated its revolving credit, term loan and security agreement on May 10 with PNC Capital Markets, LLC as lead arranger. The agreement was originally dated Sept. 23, 2011.

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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