FORT WORTH, Texas, Oct. 2, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") announced today that it has entered into a new asset-based lending credit facility ("New ABL") that is secured by its accounts receivable. The New ABL has a four-year term and replaces its prior $75 million asset-based lending credit facility ("Prior ABL"). The New ABL agreement was filed with the SEC in an 8-K earlier today.
Under the New ABL, the borrowing base will be measured each month and, based on the accounts receivable at August 31, Basic would have available borrowings of approximately $42 million, net of letters of credit mainly required for insurance collateral. This availability would not be subject to restrictions on borrowing or covenants other than measurements of accounts receivable as of an applicable borrowing date and customary events of default. The Prior ABL was subject to other covenant constraints, including a fixed charge coverage ratio, that limited the ability for borrowings.
Roe Patterson, Basic's CEO and President, stated, "We were very pleased to improve the liquidity of the company with the successful completion of the New ABL to ensure that Basic has the ability to meet working capital needs when required. Based on this improved liquidity from the New ABL, we have decided that the $50 million at-the-market ("ATM") public offering announced on August 3, 2017 is no longer needed, and the ATM program has been terminated."
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,000 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release may include forward-looking statements and projections made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Basic has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise.
Trey Stolz, VP Investor Relations
Basic Energy Services, Inc.
Jack Lascar / Kaitlin Ross
SOURCE Basic Energy Services, Inc.