Natural Gas Services gets five-year revolver with $175 million initial commitment

By Wendy Van Sickle

Columbus, Ohio, March 6 – Natural Gas Services Group, Inc. entered into a five-year senior secured revolving credit agreement with an initial commitment of $175 million on Feb. 28, according to an 8-K filing with the Securities and Exchange Commission.

Texas Capital Bank is the administrative agent. TCBI Securities, Inc. is the bookrunner and a lead arranger along with Bank of America, NA.

The company has the right to increase the commitment up to $300 million. The maturity date is Feb. 28, 2028.

The maximum amount available is subject to a borrowing base, which was $134 million as of Jan. 31.

Borrowings bear interest at term SOFR plus a margin ranging from 300 basis points plus 375 bps, depending on leverage ratio.

There is a commitment fee of 50 bps.

Proceeds will be used for working capital, capital expenditures and other general corporate purposes.

The Midland, Tex., company is a provider of small to medium horsepower compression equipment to the natural gas industry.

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