HOUSTON, March 3, 2017 /PRNewswire/ -- CARBO Ceramics
Inc. (NYSE: CRR) announced today that it has refinanced its
existing bank debt with a debt placement with the Wilks Brothers,
LLC. The new debt placement includes an initial funding of
$52.7 million plus an additional
$12.3 million to be released after
certain conditions have been satisfied. The loan bears
interest at 9% and gives CARBO the option to make payment-in-kind,
or PIK, at 11% interest during the first two years of the
loan. The loan is secured by all accounts receivable,
inventory, cash in certain accounts, domestic distribution assets
residing on owned property, plant facilities and equipment in
Marshfield, Wisconsin and
Toomsboro, Georgia, and certain
real property interests in mines and minerals. The loan does
not contain any financial maintenance covenants and cannot be
repaid during the first three years without making the lender whole
for interest over the entire remaining term of the loan. As
part of the transaction, CARBO issued a warrant exchangeable for
523,022 shares of CARBO common stock upon payment of an exercise
price of $14.91 per share. Of
the total loan amount of $65.0
million, $52.7 million has
been applied to pay off CARBO's bank debt, and the excess is
expected to be used for working capital and general corporate
purposes.
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Morgan D. Neff and Matt Wilks from Wilks Brothers, LLC
commented, "We are delighted with the collaborative effort
that took place to close this transaction as it will provide CARBO
the platform and flexibility to maximize long-term value for
stakeholders."
CEO Gary Kolstad commented, "We
are pleased to have closed this transaction with a partner that
understands the energy business, appreciates the value residing
within our technology portfolio and believes in building an
enduring company over the long term. The additional
flexibility and liquidity provided to CARBO will support our growth
initiatives over the coming years."
About Wilks Brothers, LLC
Wilks Brothers, LLC is the investment arm of the Wilks Family
Office, based in Cisco, Texas. The company manages
significant public and private market investments across multiple
sectors. In 2002, the family founded FracTech, a
hydraulic fracturing and oil field services firm, and grew the firm
into the largest independent pressure pumping provider in
North America before selling its
stake in 2011.
About CARBO
CARBO (NYSE: CRR) is a global technology company that
provides products and services to the oil and gas and industrial
markets to enhance value for its clients.
CARBO Oilfield Technologies - is a global leader that
provides engineered solutions in its Design, Build, and Optimize
the Frac® technology businesses, delivering important value to
E&P operators by increasing well production and EUR.
Oilfield Technologies is the world's largest producer of high
quality ceramic proppant, provides one of the industry's most
widely used fracture simulation software, has proprietary
technology that provides fracture diagnostics and production
assurance, and offers consulting services for fracture design and
completion optimization. The Company also provides a range of
technology solutions for spill prevention and containment.
Its products and services are sold to operators of oil and
natural gas wells and to oilfield service companies for use in the
hydraulic fracturing of natural gas and oil wells.
CARBO Industrial Technologies - is a leading provider of
high-performance industrial ceramic media products that are
engineered to increase process efficiency, improve end-product
quality and reduce operating costs.
Its products and services are primarily sold to industrial
companies that work in manufacturing and mineral processing.
For more information, please visit www.carboceramics.com.
Investor Contact:
Mark
Thomas, Director, Investor Relations
(281) 921-6400
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SOURCE CARBO Ceramics Inc.