Key Energy Services has entered into a Restructuring Support Agreement with lenders under its term loan facility collectively holding over 99.5% of the principal amount of the Company’s outstanding term loans.
Key Energy Services elected not to make a scheduled interest payment due October 18, 2019 under the term loan and security agreement dated December 15, 2016 with Cortland Products as agent and its ABL agreement with Bank of America as administrative agent.
Key Energy Services will enter into new term loan and ABL facility in connection with its plan of reorganization. The funds will be provided by a syndicate of banks, led by Bank of America and Cortland Capital Markets.
Key Energy Services reduced the total commitments by the lenders under its credit facility from $550 million to $400 million. According to the company 8-K filing, JPMorgan Chase served as administrative agent.