U.S. Well Services amends term loan to borrow last-out term loans

By Marisa Wong

Los Angeles, March 4 – U.S. Well Services, Inc. announced it entered into an amendment to its senior secured term loan credit agreement so that it can borrow last-out term loans.

To date, the term loan C lenders have made $21.5 million of term C loans, the proceeds of which will be used for general working capital, including the funding of growth capital expenditures, according to a Friday press release.

Term C loans are extended on a last-out basis in the payment waterfall relative to existing first-out term A loans and term B loans.

Term C loans bear interest at a benchmark rate, subject to a 2% floor, plus 1,200 basis points, payable in-kind.

After repayment of the first-out term loans in full, the company will pay to the term loan C lenders the following premiums upon any repayment, prepayment or acceleration of the term C loans: 30% of the repaid, prepaid or accelerated amount, if that repayment, prepayment or acceleration occurs on or prior to May 31; 65% of the repaid, prepaid or accelerated amount, if that repayment, prepayment or acceleration occurs between June 1 and Aug. 31; and 100% of the repaid, prepaid or accelerated amount, if that repayment, prepayment or acceleration occurs on or after Sept. 1.

In connection with the $21.5 million term C loan advance, the company issued about 15 million warrants to purchase class A common stock with a weighted average exercise price of $1.11 per share to the lenders.

Piper Sandler & Co. was exclusive financial advisor to the company.

The provider of hydraulic fracturing services is based in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.