KEY ENERGY SERVICES, INC. (OTCMKTS:KEGXQ) Files An 8-K Entry into a Material Definitive Agreement
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). 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 375425 basis points for LIBOR borrowings (with a 1.00% LIBOR floor) and 275325 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. |