Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BASIC ENERGY SERVICES, INC. | a8-k2016x09x14.htm |
| EX-10.3 - EXHIBIT 10.3 - BASIC ENERGY SERVICES, INC. | a103bes2019notesforbeara.htm |
| EX-10.1 - EXHIBIT 10.1 - BASIC ENERGY SERVICES, INC. | a101termloanwaivercrossd.htm |
| EX-10.2 - EXHIBIT 10.2 - BASIC ENERGY SERVICES, INC. | a102temporarylimitedwaiv.htm |
Exhibit 99.1
Contacts: Alan Krenek,
Chief Financial Officer
Basic Energy Services, Inc.
817-334-4100
Jack Lascar
Dennard ▪ Lascar Associates
713-529-6600
BASIC ENERGY SERVICES ENTERS INTO FORBEARANCE
AGREEMENT AND OBTAINS WAIVERS TO CONTINUE
DELEVERAGING NEGOTIATIONS WITH SECURED LENDERS AND
UNSECURED BONDHOLDERS
FORT WORTH, Texas – September 14, 2016 – 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.
Specifically, the Company has 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. The
Company has elected not to make the interest payment upon the expiration of the 30-day grace
period. Under the forbearance agreement, the unsecured noteholders have 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.
Additionally, the Company’s Secured Lenders have 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. The forbearance and temporary waivers will provide the Company with
additional flexibility to continue discussions with all its creditors with the objective of improving
Basic’s long-term capital structure.
Roe Patterson, Basic’s President and Chief Executive Officer, stated, “I would like to express our
appreciation to our Secured Lenders and unsecured bondholders for their continued support and
cooperation. The forbearance agreement and temporary waivers will provide additional time to
reach 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.”
NEWS RELEASE
FOR IMMEDIATE RELEASE
2
The Company continues to believe that it has ample liquidity at this time to continue efficient and
uninterrupted operations in the ordinary course and anticipates meeting 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. 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, and (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. 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.