Forbes Energy gets $35 million ABL facility, ups first-lien term loan

By Wendy Van Sickle

Columbus, Ohio, Nov. 16 – Forbes Energy Services Ltd. entered into a new $35 million asset-based lending facility with Regions Bank and upsized its existing first-lien term loan for an additional $60 million of term loan proceeds in order to fund its acquisition of Cretic Energy Services, LLC, according to a news release issued on Friday.

Forbes Energy expects to repay a $50 million short-term portion of its term loan with proceeds from a planned offering of rights to purchase subordinated convertible debt securities to its existing shareholders on a pro rata basis.

If Forbes Energy does not consummate the rights offering within 12 months, the short-term portion of the term loan will automatically convert to subordinated convertibles.

Forbes Energy is an independent oilfield services contractor based in Houston. Cretic is a Montgomery, Texas-based provider of large-diameter, extended-reach, coiled tubing services to oil and gas producers predominantly in the Permian Basin.

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