Wells Fargo, Bank of America, JPMorgan and Royal Bank of Canada closed a $125 million asset-based loan for Oil States, a products and services provider to the oil and natural gas, industrial and military sectors. Wells Fargo acted as administrative agent on the transaction.

Borrowing availability under the credit agreement is based on eligible U.S. receivables and inventory. The agreement replaces Oil States’ existing $200 million revolving credit facility. The maturity date is Feb. 10, 2025.

The credit agreement contains customary representations, warranties, covenants, terms and conditions for a facility of this type, including limitations on the accumulation of U.S. cash in excess of $30 million, incurrence of additional indebtedness and liens, the repayment of other indebtedness, the making of investments, the payment of dividends, the repurchase of shares of common stock and the sale of material amounts of assets.

Borrowings outstanding under the credit agreement will bear interest at LIBOR plus a margin of 2.75% to 3.25%, based on Oil States’ availability under the revolving credit facility. The company must also pay a quarterly commitment fee of 0.375% to 0.5% on the unused commitments.