Forbes Energy gets five-year $75 million revolver with Regions Bank

By Toni Weeks

San Diego, Sept. 13 - Forbes Energy Services Ltd. and its domestic subsidiaries entered into a five-year asset-based revolving credit facility on Sept. 9, according to a filing with the Securities and Exchange Commission.

The loan and security agreement is with Regions Bank, SunTrust Bank, CIT Bank and Capital One Leverage Finance Corp. as lenders and Regions Bank as agent. Jefferies Finance LLC is the arranger and syndication agent, and Regions Business Capital is the bookrunner.

The loan matures on Sept. 9, 2016.

The facility provides for initial borrowing of up to $75 million, subject to borrowing base availability. The borrowing base at any time will be equal to (i) 85% of eligible accounts plus (ii) the lesser of 85% of the appraised value of Forbes' well services equipment that is located in the United States and is in good condition and 100% of the net book value of the equipment minus (iii) any reserves.

Borrowings under the revolver will bear interest at Libor plus 225 basis points to 275 bps based on borrowing availability.

The facility has an unused fee of 37.5 bps per year and a letter-of-credit fee of 225 bps to 275 bps.

Proceeds can be used for the purchase of well services equipment, permitted acquisitions, general operations, working capital and other general corporate purposes.

Forbes Energy is an independent oilfield services contractor based in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.