Nuverra Environmental Solutions closed a multi-faceted debt refinancing with First International Bank and Trust, which is based in Watford City, ND. Nuverra executed a $10 million real estate loan, $13 million in equipment financing under the Main Street Priority Lending program, a $5 million undrawn working capital revolver and a $4.839 million letter of credit facility.
Proceeds from the real estate loan and the equipment financing repaid all outstanding obligations owed to Ares under Nuverra’s first lien facility and revolver (which included the outstanding letters of credit) and all outstanding obligations under its second lien term loan held by affiliates of Gates Capital and Ascribe, the company’s two largest shareholders.
“This is a very important refinancing for Nuverra. We are excited to be working with First International, who designed a thoughtful refinancing structure,” Charlie Thompson, CEO of Nuverra, said. “They know our industry and bring a level of experience that is refreshing but not surprising given the bank’s 110-year history. With this refinancing, we have extended our maturities, lowered our borrowing rates, simplified our covenant structure and reduced our annual amortization. Nuverra is in a much better position to address the challenges still facing our industry.”
Nuverra Environmental Solutions provides water logistics and oilfield services to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States.
