Aly Energy Services, Inc. (OTCMKTS:ALYE) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
Effective June 30, 2018, we entered into a Third Amended and Restated Credit Agreement with our secured lender. The new credit agreement amends the Second Amended and Restated Credit Agreement with Permian Pelican, LLC, our majority stockholder, in the following principal respects:
| · | Permian Pelican, LLC has assigned its rights and obligations under the credit agreement to its affiliate, Permian Pelican Financial, LLC. |
| · | The maturity date of the facility has been extended from December 31, 2019 to June 30, 2021. However, the new facility institutes a requirement for monthly principal payments of $83,333.33. |
| · | The facility combines the term loan and delayed draw term loan into an aggregate term loan of $5.6 million. |
| · | The facility increases the revolving credit commitment to $1.7 million, of which $1.0 million was outstanding as of June 30, 2018. |
The interest rate for borrowings under the credit agreement continues to be 6 month LIBOR + 3% per annum. Interest is paid monthly on the fifth business day following the last business day of each month, commencing July 2018. The obligations under the credit agreement are guaranteed by all of our subsidiaries and secured by substantially all of our assets. The credit agreement contains customary events of default and covenants including restrictions on our ability to incur additional indebtedness, make capital expenditures, pay dividends or make other distributions, grant liens and sell assets.
About Aly Energy Services, Inc. (OTCMKTS:ALYE)
Aly Energy Services, Inc. provides oilfield services, including surface equipment rental, solids control services and directional drilling services, to exploration and production companies. The Company provides a range of oilfield services to owners and operators of oil and gas wells. The Company offers services under various categories, including surface rental equipment, solids control systems, and directional drilling and measurement-while-drilling (MWD) services. The Company’s equipment and services are primarily designed for and used in land-based horizontal drilling. Its equipment includes centrifuges and auxiliary solids control equipment, mud circulating tanks (MCTs) and auxiliary surface rental equipment, portable mud mixing plants, containment systems, and MWD kits. The Company services the Permian Basin (in Texas and New Mexico), Eagle Ford Shale, Utica Shale, Marcellus Shale, Woodford Shale, Granite Wash, Mississippian Lime and Tuscaloosa Marine Shale.