Basic Energy (NYSE:BAS)
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1 Month : From Sep 2018 to Oct 2018
FORT WORTH, Texas, Sept. 25, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company has priced its previously announced offering of $300 million aggregate principal amount of 10.75% senior secured notes due 2023 (the "notes"), at a price of 99.042% of par to yield 11.00%. The offering is expected to close on October 2, 2018, subject to customary closing conditions.
The notes will mature on October 15, 2023 and will be secured, senior obligations of the Company. Interest will be payable semi-annually in arrears. The notes will be guaranteed on a senior secured basis by Basic's existing material subsidiaries (excluding certain finance-related subsidiaries). The notes will initially be secured by a first-priority lien on substantially all of the assets of the Company and the subsidiary guarantors other than accounts receivable, inventory and certain related assets.
Basic intends to use the net proceeds of the proposed offering to repay Basic's existing indebtedness under its term loan, to repay Basic's outstanding borrowings under its asset-based secured revolving credit facility, and for general corporate purposes.
Neither the notes nor the related guarantees have been, nor will be, registered under the Securities Act of 1933, as amended (the "Act"), or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The notes were offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to certain non-U.S. persons outside of the United States pursuant to Regulation S, each under the Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Safe Harbor Statement
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties. Basic cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Basic does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise except as required by law. The Company further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.
Trey Stolz, VP Investor Relations
Basic Energy Services, Inc.
Jack Lascar / Kaitlin Ross
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SOURCE Basic Energy Services, Inc.