Flotek amends loan terms, allowing $40 million buyback of convertibles

By Susanna Moon

Chicago, Dec. 17 - Flotek Industries, Inc. said it amended its credit facility with PNC Bank, pushing out the maturity to Jan. 31, 2013 and allowing the company to repurchase up to $40 million of its outstanding convertible notes.

The company also reached an agreement in principle on a permanent restatement and extension of its facility with PNC Bank and expects to complete formal documentation and closing prior to year-end, according to a company press release.

"We are pleased that PNC Bank has agreed to extend the terms of our current credit facility and to expand our relationship. Once finalized, this will provide Flotek with capital to refinance all of our remaining convertible notes and additional access to capital on flexible and efficient terms to fund our future growth plans," John Chisholm, chairman, president and chief executive officer of Flotek, said in the release.

Chisholm also noted that the company had a cash position of nearly $30 million, allowing it to be "well positioned to finish the year in one of the strongest financial positions in the history of our company."

Flotek is a Houston-based developer and distributor of oilfield technologies, including specialty chemicals and down-hole drilling and production equipment.

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