ChampionX Successfully Closes Debt Refinancing

Rhea-AI Summary

ChampionX Corporation, based in The Woodlands, Texas, has announced the successful refinancing of its credit facilities with a new agreement. This includes a $625 million 7-year term loan B and a $700 million 5-year revolving credit facility. Funds from the term loan and an initial draw from the revolving credit will be used to pay off existing debts, including the 2018 senior secured credit facility and the 2020 term loan facility. This refinancing extends the nearest debt maturity to 2027 and strengthens the company's liquidity position.

Positive

• Successful refinancing of credit facilities enhances liquidity.
• Proceeds used to repay existing debts, simplifying the balance sheet.
• Extends nearest debt maturity to 2027, reducing refinancing risk.

Negative

• None.

THE WOODLANDS, Texas, June 07, 2022 (GLOBE NEWSWIRE) -- ChampionX Corporation (“ChampionX” or the “Company”) (NASDAQ: CHX), today announced that it has refinanced its existing credit facilities with a restated senior secured credit facility, amending and restating its 2018 senior secured credit facility. The restated agreement provides a $625 million 7-year term loan B and a $700 million 5-year revolving credit facility. The Company will use the proceeds from the term loan, and an initial draw from the revolving credit facility, to (a) repay outstanding amounts under its 2018 senior secured credit facility and (b) repay and terminate its 2020 term loan facility, and to redeem all outstanding 6.375% Senior Notes due 2026. Proceeds from future draws of the revolving credit facility will be used for working capital and other general corporate purposes.

“We are pleased with the successful execution of this debt refinancing, which further simplifies our balance sheet, extends our nearest debt maturity to 2027, and enhances our strong liquidity position,” said Sivasankaran “Soma” Somasundaram, President and Chief Executive Officer of ChampionX.

The restated senior secured credit facility continues to be guaranteed by certain of the Company’s wholly-owned domestic subsidiaries and secured by substantially all of the Company’s and each guarantor’s assets.

About ChampionX

ChampionX is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. ChampionX’s products provide efficient functioning throughout the lifecycle of a well with a focus on the production phase of wells. To learn more about ChampionX, visit our website at www.championX.com.

Investor Contact:
Byron Pope – byron.pope@championx.com – 281-602-0094

Media Contact:
John Breed – john.breed@championx.com – 281-403-3751

FAQ

What does the refinancing of ChampionX credit facilities involve?

The refinancing includes a $625 million 7-year term loan B and a $700 million 5-year revolving credit facility.

What is the purpose of the proceeds from the refinancing?

Proceeds will be used to repay existing debts and for working capital and general corporate purposes.

When is ChampionX's nearest debt maturity?

The nearest debt maturity for ChampionX has been extended to 2027.

What impact does the refinancing have on ChampionX's liquidity?

The refinancing strengthens ChampionX's liquidity position.