HOUSTON – KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) has entered into agreements to refinance its existing 2025 senior secured notes by issuing approximately $232 million of senior secured notes due March 2030.
The Company has also entered into a new asset-based lending (ABL) credit facility with a $125 million commitment, a first-in-last-out facility with a $10 million commitment, and a committed incremental loan option with a $25 million commitment. The refinancing is expected to close on or about March 11, 2025, subject to customary closing conditions.
Additionally, KLX anticipates 2024 fourth quarter revenue to meet the midpoint of its previously disclosed guidance, while Adjusted EBITDA margin is expected to exceed the high end of prior guidance.
“I am pleased to announce that we finished the year strong despite typical seasonal headwinds and fourth-quarter budget exhaustion driven by customer frac holidays,” said Chris Baker, KLX President and Chief Executive Officer. “Our continued focus on cost controls combined with favorable mix shifts in product service line contribution enabled us to significantly increase our 2024 fourth-quarter Adjusted EBITDA margin compared to the same period last year. Despite a 5% decline in the U.S. rig count, KLX’s focus on completion, production, and intervention business lines and technologies, which are primarily post-frac weighted, allowed us to sustain strong performance deep into the quarter.”
Keefer Lehner, EVP and Chief Financial Officer, added: “We are pleased to announce the refinancing of our bonds and ABL, which marks a significant milestone in our efforts to strengthen KLX’s financial position. This refinancing extends our debt maturity profile and provides us with enhanced financial flexibility to execute our strategic initiatives, including accretive, deleveraging M&A through the support of a committed lender group and enhanced liquidity features in the ABL.”
“With this improved capital structure, we are well-positioned to capitalize on opportunities to delever and grow, while delivering value to our shareholders. We look forward to discussing the refinancing when we report Q4 2024 results on March 14, 2025,” concluded Lehner.
Advisors
KLX was advised on the refinancing transactions by TPH&Co., the energy business of Perella Weinberg Partners, and Vinson & Elkins LLP.
