HOUSTON, March 3, 2017 /PRNewswire/ -- CARBO Ceramics Inc. (NYSE: CRR) announced today that it has refinanced its existing bank debt with a debt placement with the Wilks Brothers, LLC. The new debt placement includes an initial funding of $52.7 million plus an additional $12.3 million to be released after certain conditions have been satisfied. The loan bears interest at 9% and gives CARBO the option to make payment-in-kind, or PIK, at 11% interest during the first two years of the loan. The loan is secured by all accounts receivable, inventory, cash in certain accounts, domestic distribution assets residing on owned property, plant facilities and equipment in Marshfield, Wisconsin and Toomsboro, Georgia, and certain real property interests in mines and minerals. The loan does not contain any financial maintenance covenants and cannot be repaid during the first three years without making the lender whole for interest over the entire remaining term of the loan. As part of the transaction, CARBO issued a warrant exchangeable for 523,022 shares of CARBO common stock upon payment of an exercise price of $14.91 per share. Of the total loan amount of $65.0 million, $52.7 million has been applied to pay off CARBO's bank debt, and the excess is expected to be used for working capital and general corporate purposes.
Morgan D. Neff and Matt Wilks from Wilks Brothers, LLC commented, "We are delighted with the collaborative effort that took place to close this transaction as it will provide CARBO the platform and flexibility to maximize long-term value for stakeholders."
CEO Gary Kolstad commented, "We are pleased to have closed this transaction with a partner that understands the energy business, appreciates the value residing within our technology portfolio and believes in building an enduring company over the long term. The additional flexibility and liquidity provided to CARBO will support our growth initiatives over the coming years."
About Wilks Brothers, LLC
Wilks Brothers, LLC is the investment arm of the Wilks Family Office, based in Cisco, Texas. The company manages significant public and private market investments across multiple sectors. In 2002, the family founded FracTech, a hydraulic fracturing and oil field services firm, and grew the firm into the largest independent pressure pumping provider in North America before selling its stake in 2011.
CARBO (NYSE: CRR) is a global technology company that provides products and services to the oil and gas and industrial markets to enhance value for its clients.
CARBO Oilfield Technologies - is a global leader that provides engineered solutions in its Design, Build, and Optimize the Frac® technology businesses, delivering important value to E&P operators by increasing well production and EUR. Oilfield Technologies is the world's largest producer of high quality ceramic proppant, provides one of the industry's most widely used fracture simulation software, has proprietary technology that provides fracture diagnostics and production assurance, and offers consulting services for fracture design and completion optimization. The Company also provides a range of technology solutions for spill prevention and containment.
Its products and services are sold to operators of oil and natural gas wells and to oilfield service companies for use in the hydraulic fracturing of natural gas and oil wells.
CARBO Industrial Technologies - is a leading provider of high-performance industrial ceramic media products that are engineered to increase process efficiency, improve end-product quality and reduce operating costs.
Its products and services are primarily sold to industrial companies that work in manufacturing and mineral processing.
For more information, please visit www.carboceramics.com.
Mark Thomas, Director, Investor Relations
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SOURCE CARBO Ceramics Inc.