Key Energy Services Inc. closed a $100 million asset-based revolving credit facility (ABL) and closed and funded a $315 million term loan facility, the onshore rig-based well services company said June 2. They replaced the $400 million senior revolving credit facility.
The new facilities do not have cash flow-based financial maintenance covenants, but Key must maintain $100 million in liquidity under the ABL. On its closing, Key had $270.6 million in liquidity.
Key must also maintain certain liquidation ratios, and the term loan was issued with certain Libor requirements.
Dick Alario, chairman, president and CEO, said that the company secured well-structured, sufficient liquidity for the current industry downturn. There is also has flexibility regarding an ongoing investigation concerning the Foreign Corrupt Practices Act.
Bank of America Merrill Lynch is the sole lead arranger of the term loan facility. Bank of America Merrill Lynch and Wells Fargo are joint lead arrangers on the ABL.
Key Energy Services Inc. is based in Houston.
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