FORT WORTH, Texas,
Sept. 14, 2016 /PRNewswire/ -- Basic Energy Services,
Inc. (NYSE: BAS) ("Basic" or the "Company") and certain
subsidiaries today announced that the Company, its secured term
loan lenders and secured asset-based revolver lenders
(collectively, the "Secured Lenders"), and certain of its unsecured
bondholders have taken steps to enable the continuation of
negotiations regarding a deleveraging transaction.
Specifically, the Company has entered into a forbearance
agreement with over 81% of the holders of the 7.75% senior notes
due 2019 (the "2019 Notes") with respect to the previously
announced 30-day grace period related to an $18.4 million payment of interest under the 2019
Notes. The Company has elected not to make the interest
payment upon the expiration of the 30-day grace period. Under
the forbearance agreement, the unsecured noteholders have agreed to
forbear from exercising their rights and remedies, including the
right to accelerate any indebtedness, through September 28, 2016 in connection with the
interest payment default.
Additionally, the Company's Secured Lenders have agreed to
provide temporary waivers of certain existing and future defaults
under the Term Loan and ABL Facility related, in part, to the
missed interest payment. The forbearance and temporary
waivers will provide the Company with additional flexibility to
continue discussions with all its creditors with the objective of
improving Basic's long-term capital structure.
Roe Patterson, Basic's President and Chief Executive Officer,
stated, "I would like to express our appreciation to our Secured
Lenders and unsecured bondholders for their continued support and
cooperation. The forbearance agreement and temporary waivers
will provide additional time to reach a mutually acceptable
financial restructuring plan that provides Basic with a sustainable
capital structure that supports the Company's long-term business
plan and results in long-term value generation for the benefit of
our employees, customers, vendors, and all other stakeholders."
The Company continues to believe that it has ample liquidity at
this time to continue efficient and uninterrupted operations in the
ordinary course and anticipates meeting all of its obligations to
suppliers, customers, and employees.
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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visit:http://www.prnewswire.com/news-releases/basic-energy-services-enters-into-forbearance-agreement-and-obtains-waivers-to-continue-deleveraging-negotiations-with-secured-lenders-and-unsecured-bondholders-300328368.html
SOURCE Basic Energy Services, Inc.