Energy services and solutions company TETRA Technologies entered into a definitive agreement with Silver Point Finance for a $265 million credit facility with a maturity of January 2030. The new facility consists of a $190 million funded term loan and a $75 million delayed-draw term loan that will refinance TETRA’s existing term loan of $163 million and provide capital to advance TETRA’s Arkansas bromine processing project.
Pricing on the new credit facility is SOFR plus 575 basis points, which is 50 basis points below TETRA’s existing term loan. The new credit facility closed and funded on Jan. 12. TETRA used the proceeds to repay in full the $163 million balance of its prior credit facility, which was due in September 2025, with approximately $15 million of additional cash added to the balance sheet, net of transaction expenses.
TETRA anticipates that between its existing liquidity, which is estimated at $142 million as of Jan. 12, and free cash flow that is expected to be generated from its existing base business in 2024 and 2025, plus the $75 million delayed-draw term loan, that it has the required capital for the proposed Arkansas bromine processing project.
“We are very pleased to partner with Silver Point to refinance our existing debt. Sourcing debt at more cost-effective rates than our previous term loan and extending the maturity to January 2030 reflects TETRA’s strong financial position and highly favorable prospects. Silver Point is providing the remaining capital we require to fund the bromine processing project with the $75 million delayed-draw feature that TETRA can draw upon as we construct our bromine processing facility,” Brady Murphy, president and CEO of TETRA, said.
“We are pleased to partner with TETRA with its strong energy and industrial services and products business and to support the company as it pursues its bromine expansion initiatives to support their base business and growing low carbon business,” Anthony DiNello, head of Silver Point Finance, said. “We believe TETRA’s performance is a testament to the strength of its product and service offerings, customer relationships and execution capabilities.”
Stifel, Nicolaus & Company served as sole placement agent and financial advisor to TETRA.
