THE WOODLANDS, Texas,
July 5, 2016 /PRNewswire/ -- TETRA
Technologies, Inc. (NYSE:TTI) (the "Company" or "TETRA") today
announced it has amended its revolving credit agreement with
JPMorgan Chase Bank, N.A. ("JPMorgan") and the other lenders
thereto and has amended and restated its Note Purchase Agreement
with an affiliate of GSO Capital Partners LP ("GSO").
Stuart M. Brightman, TETRA's
President and Chief Executive Officer, stated, "We are pleased to
announce that our management team has successfully amended our main
debt agreements, including their financial covenants, with no
change in commitment levels, providing us with enhanced financial
flexibility. We would also like to thank JPMorgan, GSO and
the rest of the lending group for constructively working with us
through the amendment process. These amendments, combined
with our recent public offering of common stock, are very positive
developments for the Company and important steps for our long-term
success, as they strengthen our balance sheet, provide additional
liquidity, and better position us to respond rapidly when activity
levels rebound."
By executing the Agreement and Fourth Amendment to Credit
Agreement dated July 1, 2016 (the
"Fourth Amendment") with JPMorgan, as administrative agent, and the
other lender parties, TETRA resolves its previously reported
concerns regarding future compliance with the interest coverage
ratio covenant under the Credit Agreement dated June 27, 2006 (as previously amended the "Credit
Agreement"). The interest coverage ratio covenant was
replaced with a more customary fixed charge coverage ratio covenant
and the maximum consolidated leverage ratio was increased from 3.0X
to 4.0X from June 30, 2016 through
March 31, 2018, with subsequent step
downs. In connection with the Fourth Amendment, the Company
and certain of its subsidiaries (other than CSI Compressco LP
(NASDAQ:CCLP) and its subsidiaries) pledged collateral to secure
the obligations under the Credit Agreement. The amendment
also included additional negative covenants consistent with those
included in the Amended and Restated Note Purchase Agreement with
GSO and increased the applicable margin, based on the Company's
leverage ratio. The Fourth Amendment maintains the previous
$225 million commitment level under
the Credit Agreement.
Simultaneously with the execution of the Fourth Amendment, the
Company executed its Amended and Restated Note Purchase Agreement
dated July 1, 2016 (as amended and
restated, the "Amended and Restated Note Purchase Agreement") with
GSO regarding the Company's $125
million of 11% Senior Notes maturing in 2022. The
Amended and Restated Note Purchase Agreement, which supersedes the
previously executed Note Purchase Agreement dated November 5, 2015, was amended to delete the
interest coverage ratio covenant and replace it with a more
customary fixed charge coverage ratio covenant and increase the
maximum consolidated leverage ratio from 3.5X to 4.5X from
June 30, 2016 through March 31, 2018, with subsequent step downs.
The Company and certain of its subsidiaries (other than CSI
Compressco LP and its subsidiaries) also provided GSO with a
security interest in the same collateral that was provided under
the Fourth Amendment.
Additional details of both transactions are included in the
Company's Form 8-K filed today with the Securities and Exchange
Commission.
Company Overview and Forward Looking Statements
TETRA is a geographically diversified oil and gas services
company, focused on completion fluids and associated products and
services, water management, frac flowback, production well testing,
offshore rig cooling, compression services and equipment, and
selected offshore services including well plugging and abandonment,
decommissioning, and diving. TETRA owns an equity interest,
including all of the general partner interest, in CSI Compressco LP
(NASDAQ:CCLP), a master limited partnership.
This press release includes certain statements that are deemed
to be forward-looking statements. Generally, the use of words such
as "may," "expect," "intend," "estimate," "projects," "anticipate,"
"believe," "assume," "could," "should," "plans," "targets" or
similar expressions that convey the uncertainty of future events,
activities, expectations or outcomes identify forward-looking
statements that the Company intends to be included within the safe
harbor protections provided by the federal securities laws. These
forward-looking statements include statements concerning the
Company's expectations regarding its ability to comply with the
amended financial covenants, as well as the Company's beliefs,
expectations, plans, goals, future events and performance, and
other statements that are not purely historical. These
forward-looking statements are based on certain assumptions and
analyses made by the Company in light of its experience and its
perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances. Such statements are subject to a number of
risks and uncertainties, many of which are beyond the control of
the Company. Investors are cautioned that any such statements are
not guarantees of future performances or results and that actual
results or developments may differ materially from those projected
in the forward-looking statements. Some of the factors that could
affect actual results are described in the section titled "Risk
Factors" contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 2015, as
well as other risks identified from time to time in its reports on
Form 10-Q and Form 8-K filed with the Securities and Exchange
Commission.
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SOURCE TETRA Technologies, Inc.