FTS International closed a $250 ABL facility with Wells Fargo Bank as administrative agent.

According to a related 8-K filing, the ABL facility provides the company with an aggregate principal commitment of up to $250 million for revolving credit loans, with a sub-limit of $50 million for letters of credit. Subject to some conditions, the ABL facility may be increased up to an additional $100 million at the company’s option if the lenders agree to increase their commitments. Availability under the ABL facility is subject to a borrowing base comprised of, among other things, eligible accounts receivable, eligible unbilled accounts and eligible inventory.

The ABL facility has a five-year term, with an initial maturity date of February 22, 2023.

On February 22, 2018, Wells Fargo, the administrative agent under the ABL Facility, entered into a joinder agreement to the junior lien intercreditor agreement, dated April 16, 2014, among FTS, the guarantors, Wells Fargo (as collateral agent under the term loan agreement) and U.S. Bank National (as collateral agent under the 2022 notes). The intercreditor agreement sets forth the relative priorities of each agent’s respective security interests and other matters relating to the administration of those respective security interests.

The company intends to utilize the facility for the issuance of letters of credit, as well as general working capital purposes, providing the company with more flexibility and borrowing capacity. FTS has $5.85 million in outstanding letters of credit, which are deemed to be outstanding under the ABL facility.