FORT WORTH, Texas, Aug. 15, 2016 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today
announced that it has elected to utilize the 30-day grace period
with respect to an $18.4 million
interest payment due today on its 7.75% senior notes due 2019 (the
"2019 Notes"). Under the terms of the indenture governing the
2019 Notes (the "2019 Notes Indenture"), the Company has a 30-day
grace period after the interest payment date before an event of
default would occur on September 14,
2016. Basic believes it is in the best interests of all
stakeholders to use the grace period to continue to engage in
discussions with its secured and unsecured debtholders regarding
strategic alternatives to improve Basic's long-term capital
structure. There are no discussions underway that would
impair trade vendors, customers, or employees in any regard, and
the Company believes that it has ample liquidity at this time to
continue efficient and uninterrupted operations in the ordinary
course.
Roe Patterson, Basic's President and Chief Executive Officer,
stated, "We have made the strategic choice to use the grace period
while our discussions with Basic's debtholders continue.
During these discussions, we anticipate meeting all of our
obligations to suppliers, customers, employees, and others, as
usual, and we will continue to provide our customers with
dependable, high-quality services, which is the hallmark of our
Company."
About Basic Energy Services
Basic Energy Services provides well site services essential to
maintaining production from the oil and gas wells within its
operating area. The Company employs more than 3,400 employees
in more than 100 service points throughout the major oil and gas
producing regions in Texas,
Louisiana, Oklahoma, New
Mexico, Arkansas,
Kansas, and the Rocky Mountain and
Appalachian regions. Additional information on Basic Energy
Services is available on the Company's website at
www.basicenergyservices.com.
Safe Harbor Statement
This release includes forward-looking statements and
projections, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Basic has
made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are
current, reasonable, and complete. However, a variety of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this release, including (i) changes in demand for our services and
any related material impact on our pricing and utilizations rates,
(ii) Basic's ability to execute, manage and integrate acquisitions
successfully, (iii) changes in our expenses, including labor or
fuel costs and financing costs, (iv) continued volatility of oil or
natural gas prices, and any related changes in expenditures by our
customers, (v) competition within our industry, and
(vi) Basic's ability to comply with its financial and other
covenants and metrics in its debt agreements, as well as any
cross-default provisions. Additional important risk factors
that could cause actual results to differ materially from
expectations are disclosed in Item 1A of Basic's Form 10-K for the
year ended December 31, 2015 and
subsequent Form 10-Qs filed with the SEC. While Basic makes
these statements and projections in good faith, neither Basic nor
its management can guarantee that anticipated future results will
be achieved. Basic assumes no obligation to publicly update
or revise any forward-looking statements made herein or any other
forward-looking statements made by Basic, whether as a result of
new information, future events, or otherwise.
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Contacts:
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Alan
Krenek,
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Chief Financial
Officer
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Basic Energy
Services, Inc.
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817-334-4100
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Jack
Lascar
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Dennard ▪ Lascar
Associates
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713-529-6600
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SOURCE Basic Energy Services, Inc.