Key Energy Services, Inc. Enters into a Forbearance Agreement and the Loan Agreement, with Bank of America, N.A
December 23, 2019 at 04:17 pm EST
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As previously announced, on October 29, 2019, Key Energy Services, Inc. entered into a forbearance agreement, with Bank of America, N.A., as administrative agent and all of the lenders party thereto (the “Lenders”) regarding a default under the Loan and Security Agreement, dated as of April 5, 2019, by and among Key, the Administrative Agent and the Lenders. On December 20, 2019, the Company and the Lenders amended the ABL Forbearance Agreement and the Loan Agreement to, among other things, (i) reduce the minimum availability Key is required to maintain under the ABL Forbearance Agreement from $12.5 million to $10 million, (ii) reduce the aggregate revolving commitments under the Loan Agreement from $100 million to $80 million and (iii) add certain reporting requirements. In addition, pursuant to the Forbearance and Loan Agreement Amendment, the Lenders have agreed to waive any past breach of the ABL Forbearance Agreement caused by Key’s failure to maintain the minimum availability set forth in the ABL Forbearance Agreement prior to the date of the Forbearance and Loan Agreement Amendment.
Key Energy Services, Inc. is an onshore, rig-based well servicing contractor. The Company provides a range of well services to oil companies and independent oil and natural gas production companies. The Company's segments include Rig Services, Fishing and Rental Services, and Coiled Tubing Services. The Rig Services segment includes the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells. The Fishing and Rental Services segment offers a line of fishing services and rental equipment designed for use in providing both onshore drilling and workover services. The Coiled Tubing Services segment involves the use of metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications.