FTS International seeks loan amendment to revise financial covenants

By Sara Rosenberg

New York, Sept. 12 - FTS International Inc. is looking to amend its senior secured term loan to eliminate the maximum leverage ratio until the third quarter of 2014 and then increase it once it comes back into the credit agreement, according to a news release.

The company will replace the leverage ratio with a minimum quarterly EBITDA covenant starting in the fourth quarter of 2012.

The amendment would also suspend the interest coverage ratio for the third quarter of 2012 and reduce the ratio thereafter.

Additionally, the amendment would increase the company's ability to enter into joint ventures, make acquisitions, incur debt, enter into hedging arrangements, engage in affiliate transactions and sell assets.

Furthermore, the company is asking to reduce the annual limits on capital expenditures.

The amendment is conditioned on a $200 million term loan paydown.

Funds for the repayment will come from a $350 million convertible preferred stock offering, with the remaining proceeds from the equity raise going toward the redemption of up to 35% of the company's 7 1/8% senior notes due 2018.

FTS International is a provider of well completion services for the oil and gas industry with corporate offices in Fort Worth and Cisco, Texas.

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