NOW Inc. entered into an amendment to its existing senior secured credit facility with a syndicate of lenders, with Wells Fargo Bank serving as the administrative agent.
The first amendment amends certain terms, provisions and covenants of the credit agreement, including extending the maturity date under the credit agreement to Dec. 14, 2026; providing for a five-year, $500 million global revolving credit facility, with potential to further increase the credit facility to $750 million; increasing availability under the credit agreement by expanding the borrowing base definition to include certain pledged cash deposits of the borrowers; and decreasing by 0.25% the applicable rate for borrowings of base rate loans and eurocurrency rate loans when the fixed charge coverage ratio (as defined in the credit agreement) is less than or equal to 1.5 to 1.
“I am pleased that we have completed the amended credit facility, which extends our agreement through December 2026 and provides cost savings and improved terms,” David Cherechinsky, president and CEO of NOW, said. “Working capital efficiencies converted our inventory and receivables into record cash levels. Under the updated credit facility, including the accordion feature, we maintain a considerable runway for growth with the potential to triple our reported third quarter credit facility availability of $248 million. We are appreciative of our bank group’s support and continued commitment to DNOW. The amended credit facility, along with our strong cash position and debt-free balance sheet, provide significant strategic flexibility and capital for continued growth.”
