Item 1.01.
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Entry into a Material Definitive Agreement.
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Amendment to Loan and Security Agreement
On
August 28, 2020, Key Energy Services, Inc., a Delaware corporation (the Company), Key Energy Services, LLC, a Texas limited liability company (Key Energy LLC), the lenders party thereto (Lenders) and Bank of
America, N.A., as administrative agent, entered into Amendment No. 5 to that certain Loan and Security Agreement (the ABL Agreement), dated as of December 15, 2016 (ABL Amendment). Pursuant to the
ABL Amendment, the parties have agreed, among other things, to permit the Company and Key Energy LLC to undertake sale and leaseback transactions with an aggregate fair market value of up to $5 million during the term of the ABL Agreement.
Amendment to Term Loan and Security Agreement
On
August 26, 2020, the Company, as borrower, Key Energy LLC, certain lenders party thereto, Cortland Products Corp, as agent (Term Loan Agent), and Cortland Capital Market Services LLC (as Vehicle Agent and together with
the Term Loan Agent, the Agents) entered into Amendment No. 1 to that certain Term Loan and Security Agreement (as amended and restated from time to time, the Term Loan Agreement), dated as of December 15, 2016
(Term Loan Amendment and together with the ABL Amendment, the Amendments). Pursuant to the Term Loan Amendment, the parties have agreed, among other things, to permit the Company and Key Energy LLC to undertake sale and
leaseback transactions with an aggregate fair market value of up to $5 million during the term of the Term Loan Agreement.
The foregoing
descriptions of the Amendments are qualified in their entirety by reference to the complete text of the Amendments, attached as Exhibits 10.1 and 10.2 hereto and incorporated herein by reference.