Forum gets amended $200 million revolver at Libor plus 300-400 bps

By Susanna Moon

Chicago, Feb. 26 – Forum Energy Technologies, Inc. obtained an amended $200 million revolving credit line, including up to $25 million in letters of credit and up to $10 million in swingline loans, according to an 8-K filing with the Securities and Exchange Commission.

The company amended its credit agreement Thursday with Wells Fargo Bank, NA as administrative agent.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the co-lead arrangers and joint bookrunners. JPMorgan Chase Bank, NA and Bank of America, NA are the co-syndication agents. Citibank, NA and Deutsche Bank Securities Inc. are the co-documentation agents.

The amended facility also allows the company to increase commitments by another $150 million.

Interest on the loans is Libor plus 300 basis points to 400 bps. The unused fee is 37.5 bps.

The financial covenants require the company, on a consolidated basis, to maintain

• Senior secured debt to adjusted EBITDA of no more than 4.5 times for the period from Feb. 25 through Dec. 31, 2016, no more than 4 times from Jan. 1, 2017 through Dec. 31, 2017 and no more than 3.5 times after that; and

• A fixed charge coverage ratio of no more than 1.25 times.

The amendment also eliminates the company’s obligation to maintain a specific minimum total leverage ratio and a minimum interest coverage ratio.

No other loan provisions were amended, the filing noted.

Forum Energy Technologies is a Houston-based manufacturer of oilfield products and related after-market technical services in the oil and natural gas industry.

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