TETRA Technologies, Inc. (NYSE:TTI) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k

8 years ago

TETRA Technologies, Inc. (NYSE:TTI) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01. Entry into a Definitive Material Agreement.

Fifth Amendment to Credit Agreement

On May 5, 2017, CSI Compressco LP, a Delaware limited partnership
(the Partnership) and a consolidated subsidiary of TETRA
Technologies, Inc., a Delaware corporation (TETRA) and CSI
Compressco Sub Inc., a Delaware corporation and wholly-owned
subsidiary of the Partnership (CSI Compressco Sub), as borrowers,
entered into the Fifth Amendment to Credit Agreement (the
Amendment) amending the Credit Agreement dated August 4, 2014 (as
previously amended by that certain First Amendment to Credit
Agreement dated as of December 18, 2014, that certain Second
Amendment to Credit Agreement dated as of April 1, 2015, that
certain Third Amendment to Credit Agreement dated as of May 25,
2016 and that certain Fourth Amendment to Credit Agreement dated
as of November 3, 2016, as so amended, the Credit Agreement) with
Bank of America, N.A., in its capacity as administrative agent,
collateral agent, lender, letter of credit issuer and swing line
issuer (Administrative Agent), and the other lenders and loan
parties a party thereto. Merrill Lynch, Pierce, Fenner Smith
Incorporated and JPMorgan Chase Bank, N.A. were appointed as
joint lead arrangers and joint bookrunners for purposes of this
Amendment.

The Amendment modified certain financial covenants in the Credit
Agreement as follows:

(i)

the consolidated total leverage ratio may not exceed (a)
5.95 to 1 as of March 31, 2017; (b) 6.75 to 1 as of June
30, 2017 and September 30, 2017; (c) 6.50 to 1 as of
December 31, 2017 and March 31, 2018; (d) 6.25 to 1 as of
June 30, 2018 and September 30, 2018; (e) 6.00 to 1 as of
December 31, 2018; and (f) 5.75 to 1 as of March 31, 2019
and thereafter; and

(ii)	the consolidated secured leverage ratio may not exceed 3.25 to 1 as of the end of any fiscal quarter.

In addition, the Amendment (i) increased the applicable margin by
0.25% in the event the consolidated total leverage ratio exceeds
6.00 to 1, resulting in a range for the applicable margin between
2.00% and 3.50% per annum for LIBOR-based loans and 1.00% to
2.50% per annum for base-rate loans, according to the
consolidated total leverage ratio, and (ii) modified the
appraisal delivery requirement from an annual requirement to a
semi-annual requirement.As previously announced, the general
partner (General Partner) of the Partnership declared a cash
distribution attributable to the quarter ended March 31, 2017 of
$0.1875 per common unit.This distribution equates to a
distribution of $0.75 per outstanding common unit, on an
annualized basis, and represents a reduction of approximately 50%
from the previous distribution level.In connection with the
Amendment, the board of directors of the General Partner adopted
resolutions limiting the Partnerships cash distributions payable
on its common units to no more than $0.1875 per common unit for
the quarterly period ending June 30, 2017.The Amendment also
included additional revisions that provide flexibility to the
Partnership for the issuance of preferred securities.

The foregoing description of the Amendment does not purport to be
complete and is qualified in its entirety by reference to the
full text of the Amendment, which will be filed as an exhibit to
TETRAs Quarterly Report on Form 10-Q for the quarter ending June
30, 2017.

Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The information set forth in Item 1.01 of this Current Report on
Form 8-K is hereby incorporated by reference in this Item 2.03.

About TETRA Technologies, Inc. (NYSE:TTI)
TETRA Technologies, Inc. is an oil and gas services company. The Company focuses on completion fluids and associated products and services, water management, production well testing, offshore rig cooling, compression services and equipment, and offshore services, such as decommissioning and diving. It is composed of five segments organized into four divisions: Fluids, Production Testing, Compression and Offshore. The Fluids division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. Its Production Testing division provides frac flowback services, production well testing services, offshore rig cooling and other associated services in various oil and gas producing regions. The Compression division provides compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Offshore division consists of two operating segments: Offshore Services and Maritech. TETRA Technologies, Inc. (NYSE:TTI) Recent Trading Information
TETRA Technologies, Inc. (NYSE:TTI) closed its last trading session up +0.11 at 3.20 with 1,012,980 shares trading hands.