This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Flotek Industries Announces Agreement To Repurchase Senior Secured Convertible Notes

Stocks in this article: FTK





HOUSTON, Dec. 28, 2011 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) announced today that it has entered into a Repurchase Agreement (the "Agreement") with the holders of the Company's 5.25% Senior Secured Convertible Notes due in 2028 (the "Notes").  

Under the terms of the Agreement Flotek will pay the holders of the Notes 104.95% of the principal amount plus accrued interest at closing. All of the holders of the notes have agreed to participate in the redemption process which will retire approximately $36 million of Flotek indebtedness. The payment, which will be in cash, will come from Company cash balances.

"Flotek is delighted to announce this transformational transaction as we conclude 2011 that significantly strengthens our balance sheet," said John Chisholm, Chairman of the Board and President of Flotek. "Our cash generation in 2011 combined with our outlook for 2012 created the opportunity to continue the fundamental improvement of our balance sheet. In the past nine months we have reduced our indebtedness by nearly 50%, or nearly $70 million. This redemption is done with no dilution to shareholders, at a premium less than the interest due in the coming 12 months, and leaves Flotek with an abundance of liquidity to execute our 2012 growth plan. Moreover, it removes any doubt and distraction regarding Flotek's ability to deal with its future debt obligations."

As of December 23, 2011 Flotek's cash balance was over $45 million. In addition, the Company has a $35 million revolving credit facility through PNC Bank that is currently undrawn. The Company anticipates capital spending of approximately $14 million in 2012 and expects operating cash flow and its credit capacity to be more than sufficient to meet capital needs.

"There should be little doubt that Flotek is a stronger, more focused company today than ever before in its history and this seminal financial transaction is just one sign of Flotek's evolution in the past two years," added Chisholm. "This would not have been possible without the dedication of the entire Flotek team that, over the course of the past twelve months, has shown incredible effort and spirit in turning our vision into reality. That said, there is much work ahead of us and, as we look ahead to 2012, we see challenges that offer opportunities to create more value for all Flotek stakeholders."

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs