Item 1.01. Entry into a Material Definitive Agreement.
On May 20, 2020, Key Energy Services, Inc., a Delaware corporation (the
"Company" or "Key"), Key Energy Services, LLC, a Texas limited liability company
("Key Energy LLC"), the lenders party thereto ("Lenders") and Bank of America,
N.A., as administrative agent ("Administrative Agent"), entered into Amendment
No. 4 to that certain Loan and Security Agreement dated as of December 15, 2016
("Amendment"). Pursuant to the Amendment, the parties have agreed, among other
things, to (i) reduce the lenders' aggregate commitments to make revolving loans
to $50 million, (ii) increase the applicable interest rate margin by 100 basis
points to 375-425 basis points for LIBOR borrowings (with a 1.00% LIBOR floor)
and 275-325 basis points for base rate borrowings (with a 2.00% base rate
floor), in each case depending on the fixed charge coverage ratio at the time of
determination, (iii) lower the availability thresholds for triggering certain
covenants and (iv) add certain reporting requirements.
The foregoing description of the Amendment is qualified in its entirety by
reference to the complete text of the Amendment, attached as Exhibit 10.1 hereto
and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
10.1 Amendment No. 4 to Loan Agreement, dated as of May 20, 2020, by and
among Key Energy Services, Inc., Key Energy Services, LLC, the Lenders
party thereto, and Bank of America, N.A., as administrative agent.
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