Item 1.01. Entry into a Material Definitive Agreement.
Amendment to Loan and Security Agreement
On August 28, 2020, Key Energy Services, Inc., a Delaware corporation (the
"Company"), 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, entered into Amendment No. 5 to that certain Loan and
Security Agreement (the "ABL Agreement"), dated as of December 15, 2016 ("ABL
Amendment"). Pursuant to the ABL Amendment, the parties have agreed, among other
things, to permit the Company and Key Energy LLC to undertake sale and leaseback
transactions with an aggregate fair market value of up to $5 million during the
term of the ABL Agreement.
Amendment to Term Loan and Security Agreement
On August 26, 2020, the Company, as borrower, Key Energy LLC, certain lenders
party thereto, Cortland Products Corp, as agent ("Term Loan Agent"), and
Cortland Capital Market Services LLC (as "Vehicle Agent" and together with the
Term Loan Agent, the "Agents") entered into Amendment No. 1 to that certain Term
Loan and Security Agreement (as amended and restated from time to time, the
"Term Loan Agreement"), dated as of December 15, 2016 ("Term Loan Amendment" and
together with the ABL Amendment, the "Amendments"). Pursuant to the Term Loan
Amendment, the parties have agreed, among other things, to permit the Company
and Key Energy LLC to undertake sale and leaseback transactions with an
aggregate fair market value of up to $5 million during the term of the Term Loan
Agreement.
The foregoing descriptions of the Amendments are qualified in their entirety by
reference to the complete text of the Amendments, attached as Exhibits 10.1 and
10.2 hereto and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
10.1 Amendment No. 5 to ABL Agreement, dated as of August 28, 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.
10.2 Amendment No. 1 to Term Loan Agreement, dated as of August 26, 2020, by
and among Key Energy Services, Inc., Key Energy Services, LLC, certain
lenders party thereto, and the Agents.
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