FORBES ENERGY SERVICES LTD. (OTCMKTS:FESL) Files An 8-K Other Events
Item 8.01 OTHER EVENTS
On March 4, 2019, Forbes Energy Services Ltd. (the “Company”) issued a press release announcing the results of its previously announced rights offering to shareholders (the “Rights Offering”). The Rights Offering expired on February 28, 2019.
to the Rights Offering, the Company distributed to its holders of common stock as of 5:00 p.m. New York City time on January 22, 2019 (the “Record Date”), non-transferable subscription rights to purchase up to $54,392,400 aggregate principal amount of 5.00% Subordinated Convertible PIK Notes due 2020 (the “Notes”). Each holder of the Company’s common stock as of the Record Date received one right for each ten shares of common stock owned, and each right entitled a holder to purchase $100 principal amount of Notes. The Rights Offering was backstopped by Ascribe II Investments LLC and Ascribe III Investments LLC (collectively “Ascribe”) and Solace Forbes Holdings, LLC (“Solace”), which collectively held approximately 38% of the issued and outstanding shares of Forbes’s common stock as of the Record Date. The Rights Offering was made to an effective registration statement filed with the U.S. Securities and Exchange Commission.
An aggregate principal amount of $51,767,900 of Notes, representing the amount necessary to repay outstanding obligations under the Company’s existing one-year bridge loan, was issued to the Rights Offering. Of that amount, $26,523,300 in aggregate principal amount of Notes was issued to the basic rights exercised (including $22,335,600 in aggregate principal amount of Notes issued to Ascribe and Solace, collectively); $50,000 in aggregate principal amount of Notes was issued to other stockholders to the over-subscription privilege; and $25,464,600 in aggregate principal amount was issued to Ascribe and Solace, collectively, to their backstop commitment.
The Notes subscribed for in the Rights Offering were delivered through the clearing systems of the Depository Trust Company and such delivery was completed on or about March 5, 2019.
About FORBES ENERGY SERVICES LTD. (OTCMKTS:FESL)
Forbes Energy Services Ltd. (FES Ltd.) is a holding company. The Company is an independent oilfield services contractor that provides a range of well site services to oil and natural gas drilling and producing companies to develop the production of oil and natural gas. The Company’s segments are Well Servicing and Fluid Logistics. Its services include fluid disposal and well maintenance. The Company’s Well Servicing segment provides an offering of well services to oil and natural gas companies, including completions of drilled oil and natural gas wells, wellbore maintenance, workovers and recompletions, tubing testing, and plugging and abandonment services. Its Fluid Logistics segment provides a range of oilfield fluid sales, transportation, storage and disposal services that are required on workover, drilling and completion projects, and are used in daily operation of producing wells by oil and natural gas producers. It operates approximately six coiled tubing spreads.
