Flotek Industries amends and extends revolver, revises covenants

By Tali Rackner

Norfolk, Va., Nov. 2 – Flotek Industries, Inc. entered into a sixth amendment to its revolving credit, term loan and security agreement on Wednesday with PNC Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment:

• The maturity was extended to May 10, 2020;

• The maximum revolving advance amount was reduced to $55 million, with the amount available increasing dollar-for-dollar as payments of principal are made on the term loan;

• The company must maintain a fixed charge coverage ratio beginning for the quarter ending March 31, 2017 of 1 time, increasing to 1.1 times for the year ending Dec. 31, 2017 and thereafter;

• The company must maintain a maximum leverage ratio beginning for the six months ending June 30, 2017 of 5.5 times, reducing to 4 times for the year ending March 31, 2018 and thereafter; and

• An annual limit on capital expenditures of $20 million was established.

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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