Forum Energy mandatorily converts $122.8 million of 9% notes due 2025

By Marisa Wong

Los Angeles, Dec. 29 – Forum Energy Technologies, Inc. said it met the mandatory conversion requirements under its 9% convertible senior secured notes due August 2025.

In connection with the conversion, $122.8 million, or 47.8%, of the notes will convert into about 4.5 million shares of the company’s common stock on Jan. 3, with settlement on Jan. 5, according to a press release.

The remaining $134.2 million of notes are not subject to any optional or further mandatory conversion provisions.

The company said its annualized interest payments will decline by over $11 million following the conversion.

As adjusted for the conversion and a recently announced sale leaseback, the company’s net debt would have been about $93 million as of Sept. 30, or 2 times trailing 12 months adjusted EBITDA. Availability under the company’s ABL credit facility would have remained $127 million as of that date.

Houston-based Forum Energy makes oilfield products and provides aftermarket technical services in the oil and natural gas industry.

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