Provides Significant Financial Flexibility
– Extending Maturity and Increasing Facility Size
HOUSTON, June 20,
2023 /PRNewswire/ -- KLX Energy Services Holdings,
Inc. ("KLX" or the "Company") (NASDAQ: KLXE) today announced that
it has entered into a Fourth Amendment (the "Amendment") to the
Credit Agreement governing the Company's asset-based lending
facility (the "ABL Facility"), led by JPMorgan Chase Bank, N.A.
("JPM"), which amends KLX's existing Credit Agreement, dated as of
August 10, 2018 (as amended, the
"Credit Agreement").
The Amendment, among other things, modifies the current
agreement to: (i) extend the maturity date of the Credit Agreement
from September 15, 2024 to the
earlier of (A) September 15, 2025 or
(B) August 1, 2025, if the Company's
senior secured notes are still outstanding as of such date; and
(ii) increase the revolving credit commitment from $100 million to $120
million.
Keefer Lehner, EVP and Chief
Financial Officer, said, "We are very pleased to have the
continued support of our lenders and to announce an Amendment
that upsizes and extends maturity on our ABL Facility. The
successful execution of our Amendment provides considerable
financial flexibility, augments liquidity, extends the Company's
debt maturity profile and is an important step that enables KLX to
continue its focus on free cash flow generation, deleveraging and
further accretive consolidation."
Pro forma for the Amendment, KLX's available liquidity as of
March 31, 2023 would have increased
by $20 million to $104 million, consisting of $40 million in cash and $64 million of pro forma availability under the
ABL Facility. Further, KLX ended May 31,
2023 with a cash balance of $67
million and pro forma available liquidity of $130 million, including $63 million of pro forma availability under the
ABL Facility.
($ in
millions)
|
March 31,
2023
As
Reported
|
|
March 31,
2023
Pro Forma for
Amendment
|
|
May 31,
2023
|
|
May 31,
2023
Pro Forma for
Amendment
|
Cash*
|
$
40
|
|
$
40
|
|
$
67
|
|
$
67
|
ABL
Availability*
|
44
|
|
64
|
|
44
|
|
63
|
Available
Liquidity*
|
$
84
|
|
$
104
|
|
$
111
|
|
$
130
|
|
* Amounts are
unaudited
|
About KLX Energy
Services
KLX is a growth-oriented provider of diversified oilfield
services to leading onshore oil and natural gas exploration and
production companies operating in both conventional and
unconventional plays in the active major basins throughout
the United States. The Company
delivers mission critical oilfield services focused on drilling,
completion, production, and intervention activities for technically
demanding wells from over 60 service and support facilities located
throughout the United States.
KLX's complementary suite of proprietary products and specialized
services is supported by technically skilled personnel and a broad
portfolio of innovative in-house manufacturing, repair and
maintenance capabilities. More information is available at
www.klxenergy.com.
Forward-Looking Statements and
Cautionary Statements
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements to encourage companies
to provide prospective information to investors. This news release
(and any oral statements made regarding the subjects of this
release) includes forward-looking statements that reflect our
current expectations and projections about our future results,
performance and prospects. Forward-looking statements include all
statements that are not historical in nature and are not current
facts. When used in this news release (and any oral statements made
regarding the subjects of this release), the words "believe,"
"expect," "plan," "intend," "anticipate," "estimate," "predict,"
"potential," "continue," "may," "might," "should," "could," "will"
or the negative of these terms or similar expressions are intended
to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on our current expectations
and assumptions about future events and are based on currently
available information as to the outcome and timing of future events
with respect to, among other things: our operating cash flows; the
availability of capital and our liquidity; our ability to renew and
refinance our debt; our future revenue, income and operating
performance; our ability to sustain and improve our utilization,
revenue and margins; our ability to maintain acceptable pricing for
our services; future capital expenditures; our ability to finance
equipment, working capital and capital expenditures; our ability to
execute our long-term growth strategy and to integrate our
acquisitions; our ability to successfully develop our research and
technology capabilities and implement technological developments
and enhancements; and the timing and success of strategic
initiatives and special projects.
Forward-looking statements are not assurances of future
performance and actual results could differ materially from our
historical experience and our present expectations or projections.
These forward-looking statements are based on management's current
expectations and beliefs, forecasts for our existing operations,
experience, expectations and perception of historical trends,
current conditions, anticipated future developments and their
effect on us and other factors believed to be appropriate. Although
management believes the expectations and assumptions reflected in
these forward-looking statements are reasonable as and when made,
no assurance can be given that these assumptions are accurate or
that any of these expectations will be achieved (in full or at
all). Our forward-looking statements involve significant risks,
contingencies and uncertainties, most of which are difficult to
predict and many of which are beyond our control. Known material
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to, risks associated with the following: a decline in
demand for our services, declining commodity prices, overcapacity
and other competitive factors affecting our industry; the cyclical
nature and volatility of the oil and gas industry, which impacts
the level of exploration, production and development activity and
spending patterns by oil and natural gas exploration and production
companies; a decline in, or substantial volatility of, crude oil
and gas commodity prices, which generally leads to decreased
spending by our customers and negatively impacts drilling,
completion and production activity; inflation; increases in
interest rates; the ongoing war in Ukraine and its continuing effects on global
trade; supply chain issues; and other risks and uncertainties
listed in our filings with the U.S. Securities and Exchange
Commission, including our Current Reports on Form 8-K that we file
from time to time, Quarterly Reports on Form 10-Q and Annual Report
on Form 10-K. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except as
required by law.
Unaudited Supplemental Pro Forma
Information
The unaudited supplemental pro forma financial information
included herein has been provided for illustrative purposes only
and does not purport to be indicative of the actual results that
would have been achieved, or of the results that may be achieved if
the Amendment had been executed earlier.
The Company has presented certain specified financial results on
a "pro forma basis" as it believes it provides more meaningful
information to investors, but these pro forma results are not
prepared consistent with Article 11 of Regulation S-X. Financial
information presented on a "pro forma basis" is the sum of the
historical financial results of the Company for the full period
shown and additional availability under the ABL Facility due to
increased commitments under the Credit Agreement. Please see the
KLX Form 10-Q for the quarter ended March
31, 2023 filed with the Securities and Exchange Commission
for additional background on the Company.
Contacts:
|
KLX Energy
Services
|
|
Keefer M. Lehner, EVP
& CFO
|
|
(832)
930-8066
|
|
IR@klxenergy.com
|
|
|
|
Dennard Lascar Investor Relations
|
|
Ken Dennard /
Natalie Hairston
|
|
(713)
529-6600
|
|
KLXE@dennardlascar.com
|
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SOURCE KLX Energy Services Holdings, Inc.