Oil States International entered into an amended and restated credit agreement which provides for total commitments of $125 million, consisting of a $75 million revolving credit facility and a $50 million multi-draw term loan facility, which will be available to draw through July 28, 2026. Wells Fargo Bank is the administrative agent for the cash flow credit agreement. In addition to Wells Fargo, lenders under the cash flow credit agreement include Zions Bancorporation, dba Amegy Bank, Woodforest National Bank and First Bank. The cash flow credit agreement replaces Oil States’ existing $125 million asset-based revolving credit facility. The maturity date of the cash flow credit agreement is Jan. 28, 2030.
Borrowings outstanding under the cash flow credit agreement bear interest at Term SOFR plus a margin of 2.50% to 3.50% or at a base rate plus a margin of 1.50% to 2.50%, in each case, determined by the company’s net leverage ratio (as defined below). The company must also pay a commitment fee of 0.375% to 0.500%, on any unused commitments. Outstanding obligations under the cash flow credit agreement are secured by a pledge of substantially all of the company’s and the guarantors’ assets located in the United States in addition to the stock of certain foreign subsidiaries.
The cash flow credit agreement contains customary representations, warranties, covenants, terms and conditions for a facility of this type, including maintaining an interest coverage ratio, defined as the ratio of consolidated EBITDA to consolidated interest expense, of at least 3.00 to 1.00, a maximum total net leverage ratio, defined as the ratio of total net funded debt to consolidated EBITDA, of no greater than 2.50 to 1.00 or, during certain periods, 3.25 to 1.00, subject to the company maintaining a maximum senior secured net leverage ratio, defined as the ratio of senior secured net debt to Consolidated EBITDA, of no greater than 2.00 to 1.00. Capitalized terms used in this paragraph are used as defined in the cash flow credit agreement.
