FORT WORTH, Texas, Feb. 28, 2018 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today
announced that the Company intends to offer, subject to market and
other conditions, $300 million
aggregate principal amount of senior secured notes due 2023 (the
"notes") through a private offering to qualified institutional
buyers pursuant to Rule 144A and to certain persons outside of
the United States pursuant to
Regulation S, each under the Securities Act of 1933, as amended
(the "Act").
The notes will be secured, senior obligations of the Company,
and 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 existing Second
Amended and Restated Term Loan Agreement, 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 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.
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 Form 10-K for the year ended December 31, 2017 filed with the U.S. Securities
and Exchange Commission.
Contacts:
|
Trey
Stolz,
|
|
VP Investor
Relations
|
|
Basic Energy
Services, Inc.
|
|
817-334-4100
|
|
|
|
Jack Lascar / Kaitlin
Ross
|
|
Dennard Lascar
Investor Relations
|
|
713-529-6600
|
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SOURCE Basic Energy Services, Inc.