This Day On The Street
Continue to site
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

Flotek Industries, Inc. Announces $75 Million Expanded Credit Facility, Extension Of Maturity And Reduced Borrowing Costs

HOUSTON, Dec. 28, 2012 /PRNewswire/ -- Flotek Industries, Inc. (NYSE: FTK) ("Flotek" or the "Company") today announced that it has entered into an Amendment to its current credit facility with PNC Bank ("PNC") that, among other terms, expands the size and extends the term of the facility, providing capital to refinance its outstanding convertible notes and reduce the cost of its current borrowings.

In total, the revised facility will provide Flotek with $75 million in borrowing capacity. The terms of the amended credit facility provide Flotek with access to a $50 million revolving credit facility, an increase from the current revolving credit facility of $35 million. In addition, PNC has extended Flotek a $25 million term loan which, combined with current cash on hand, will be used to refinance the Company's existing convertible notes between now and mid-February at which time Flotek plans to redeem the remaining outstanding convertible notes. Both the revolver and term loan mature on December 26, 2017. Interest on the new facility will vary – based on the level of borrowings – between PNC's base lending rate plus 0.50-1.50% or the London Interbank Overnight Rate ("LIBOR") plus 1.50-2.50%, a substantial reduction from the 5.25% interest rate paid on the outstanding convertible notes.

"As we conclude 2012, Flotek could not be more pleased to complete this important step in our financial evolution and quest for greater financial strength and flexibility," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "We are delighted to have PNC Bank as our partner now and into the future. This new credit arrangement not only allows us to put to rest any concerns regarding refinancing of our convertible notes but, more importantly, provides access to very affordable capital to accelerate Flotek's future growth in our core oilfield technology businesses. Combined with Flotek's industry-leading cash generation profile, the expanded revolving line of credit provides abundant capital to meet our internal growth needs in the months and years ahead."

Chisholm continued, "With nearly $30 million of cash on our balance sheet today, Flotek is well positioned to finish the year in one of the strongest financial positions in the history of our Company, a testament to the hard work and dedication of the entire Flotek team over the past twelve months."

A complete summary of the Amendment to the current facility can be found in a Form 8-K filed today with the U.S. Securities and Exchange Commission.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs