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Nuverra Environmental Solutions Completes Revised $200 Million Revolving Credit Facility

Nuverra Environmental Solutions (NYSE:NES), a leading provider of full-cycle environmental solutions to energy and industrial end-markets, announced today that it has converted its existing Bank Credit Facility (the “Facility”) into a $200 million revolving credit facility (the “Revised Facility”) that is designed to enhance liquidity and financial flexibility, as well as reduce the Company’s overall cost of debt.

The Revised Facility amends the Company’s existing Facility and will be used to replace debt drawn under the existing Facility and support ongoing working capital needs and other general corporate purposes, including growth initiatives and the potential repurchase of a portion of the Company’s currently outstanding 9.875% Senior Notes due 2018 (the “Senior Notes”). The $200 million Revised Facility also includes a $25 million accordion feature that can be used to increase the size of the Revised Facility. The Revised Facility does not include various financial covenants contained in the existing Facility, such as maximum total leverage and minimum interest coverage ratios. The Revised Facility contains a 3.0x maximum ratio of senior secured debt to Adjusted EBITDA covenant, among other customary covenants. The Company’s $400 million Senior Notes are not secured and thus not included in the senior secured debt ratio covenant calculation.

Jay Parkinson, Executive Vice President & Chief Financial Officer, said, “On our third-quarter 2013 earnings conference call, we outlined several key initiatives we were taking to strengthen our balance sheet and position us for future growth in our core shale solutions business. These steps included restructuring our credit facility and divesting our Industrial Solutions segment. This revision of our facility represents the first pillar of our strategy and provides us additional financial flexibility to execute on our growth plan and potentially repurchase a portion of our Senior Notes to reduce our overall cost of debt. We are very pleased that all of our lead banks participated in this Revised Facility and appreciate their ongoing support.”

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