Basic Energy Services entered into a new $150 million asset-based lending credit facility that is secured by its accounts receivable and related assets.
The new ABL has up to a five-year term and replaces the company’s prior $150 million asset-based lending credit facility.
Basic used the net proceeds of the offering to repay its existing indebtedness under its term loan, to repay its outstanding borrowings under the prior ABL and for general corporate purposes.
According to a related 8-K filing, Bank of America served as administrative agent, swingline lender and letter of credit issuer for the transaction. Merrill Lynch, PNC Capital Markets and UBS Securities served as lead arrangers and joint bookrunners.
The ABL facility includes borrowing capacity for letters of credit of up to $50 million in the aggregate and for borrowings on same-day notice under swingline loans subject to a sublimit of the lesser of $15 million and the aggregate commitments of the new ABL lenders. The ABL facility also provides capacity for base rate protective advances up to $10 million at the discretion of the administrative agent and provisions relating to over-advances.