FORT WORTH, Texas, Oct. 17, 2016 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") 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 made
substantial progress towards finalizing the terms of a deleveraging
transaction. To enable all parties to finish documenting the terms
of such transaction, the Company, its Secured Lenders, and certain
of its unsecured bondholders have agreed to further extend the
previously announced forbearance agreement and waivers as detailed
below.
On September 28, 2016, the Company
entered into an agreement with holders of over 81% of the 7.75%
senior notes due 2019 (the "2019 Notes") to extend the previously
announced forbearance agreement. Under the forbearance
extension, such unsecured noteholders agreed to forbear from
exercising their rights and remedies in connection with the
interest payment default, including the right to accelerate any
indebtedness, through October 16,
2016 (the "Forbearance Extension Period"). Additionally, the
Company's Secured Lenders 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.
During the Forbearance Extension Period, the Company and its
creditors have made significant progress in their negotiations
regarding a deleveraging transaction. To provide the Company
with additional time to finalize the documentation of the
deleveraging transaction, the Company has reached an agreement with
holders of over 81% of the 2019 Notes to further extend the
Forbearance Extension Period by eight days, through October 24, 2016, subject to certain terms and
conditions (including the extension of the Forbearance Extension
Period by the Company's secured term loan lenders and secured
asset-based revolver lenders) (the "Additional Extension
Period"). The Company's secured term loan lenders have also
agreed to provide an extension of their temporary waiver through
the Additional Extension Period. Furthermore, the Company has
received a one-day extension of the temporary waiver with its
secured asset-based revolver lenders and is seeking an additional
extension of the temporary waiver through October 24, 2016. The October 15, 2016 interest payment on the 7.75%
senior notes due 2022 has not been paid. The indenture
pursuant to which these notes were issued provides a grace period
of 30 days before this non-payment constitutes an event of default
thereunder.
Roe Patterson, Basic's President and Chief Executive Officer,
reiterated, "We are very pleased with the progress we have made to
date in our restructuring discussions with Basic's creditors.
We believe that we are close to finalizing the terms of a financial
restructuring plan that will leave the Company well capitalized and
positioned for strong growth."
The Company continues to have, and expects to have, adequate
liquidity to continue its efficient and uninterrupted operations in
the ordinary course and to meet 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 over 3,500 employees in
more than 100 service points throughout the major oil and gas
producing regions in Texas,
Louisiana, Oklahoma, New
Mexico, Arkansas,
Kansas, California, 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, including
statements regarding the status of the negotiations and our
liquidity. 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, (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, and (vii) the course of
our negotiations with our creditors. 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.