Forbes Energy amends credit agreement to adjust financial covenants

By Wendy Van Sickle

Columbus, Ohio, Feb. 5 – Forbes Energy Services Ltd. entered into a second amendment to its credit agreement dated as of Nov. 16, 2018 with Regions Bank as administrative agent and lender on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement was amended, effective Dec. 31, to provide that the fixed charge coverage ratio financial covenant will not be tested for each of the months ending Dec. 31 through June 30.

Also the amendment stipulates that during the period from Dec. 1, 2019 through the date that financial statements are delivered for the fiscal month ending July 31, 2020, “excess availability” under the credit agreement will equal $2.5 million or more.

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

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