FORT WORTH, Texas, Sept. 28, 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.
On September 14, 2016, the Company
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. Under the forbearance agreement, the
unsecured noteholders 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 (the
"Forbearance 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 Period, the Company and its creditors
have continued to make progress in their negotiations regarding a
deleveraging transaction. To provide the Company with
additional time to continue and conclude these discussions, the
Company has reached an agreement with over 81% of the holders of
the 2019 Notes to extend the Forbearance Period through
October 16, 2016 (the "Extension
Period"). The Company's Secured Lenders have also agreed to
provide extensions of their respective temporary waivers
through the Extension Period.
Roe Patterson, Basic's President and Chief Executive Officer,
reiterated, "We look forward to continuing our restructuring
discussions with our Secured Lenders and unsecured bondholders
during the Extension Period, and I am grateful to our creditors for
their continued support and cooperation. The extension of the
forbearance and temporary waivers will provide the time we need to
accomplish 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 have ample liquidity to continue
efficient and uninterrupted operations in the ordinary course and
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 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, 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.
Contacts:
|
Alan
Krenek,
|
|
Chief Financial
Officer
|
|
Basic Energy
Services, Inc.
|
|
817-334-4100
|
|
|
|
Jack
Lascar
|
|
Dennard ▪ Lascar
Associates
|
|
713-529-6600
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/basic-energy-services-announces-extensions-of-forbearance-agreement-and-waivers-to-continue-deleveraging-negotiations-with-secured-lenders-and-unsecured-bondholders-300336232.html
SOURCE Basic Energy Services, Inc.