FET Extends $179 Million Bank Credit Facility to September 2026

Rhea-AI Summary

Forum Energy Technologies, Inc. (NYSE: FET) announced an amendment to its asset-based revolving credit facility, extending the maturity date to September 2026. The facility size decreased from $250 million to $179 million, with interest rates adjusted to LIBOR plus a margin of 2.25% to 2.75%. As of August 30, 2021, there were no borrowings outstanding, providing approximately $124 million of total availability. This amendment gives FET flexibility for funding future growth.

Positive

• Maturity extension of Credit Facility to September 2026 provides long-term flexibility.
• $179 million facility size reduces debt obligations.
• No outstanding borrowings indicate strong liquidity position.

Negative

• Reduction in Credit Facility size from $250 million to $179 million may limit future funding options.

HOUSTON--(BUSINESS WIRE)-- Forum Energy Technologies, Inc. (NYSE: FET) today announced that it has entered into an amendment to its asset-based revolving credit facility (the “Credit Facility”). The key elements of the amendment include: (i) the maturity has been extended, subject to certain exceptions, to September 2026; (ii) the facility size has been reduced from $250 million to $179 million; and (iii) interest rates on borrowings outstanding under the Credit Facility were modified to LIBOR plus a margin of 2.25% to 2.75%, subject to the Company’s quarterly net leverage. Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A. and Bank of America, N.A. acted as Joint Lead Arrangers and Joint Bookrunners. Wells Fargo Bank, National Association will continue to act as the administrative agent. Zions Bancorporation, N.A. DBA Amegy Bank remained a lender under the Credit Facility.

The full text of the amended Credit Facility will be filed with the U.S. Securities and Exchange Commission on a Current Report on Form 8-K.

Lyle Williams, FET’s Executive Vice President and Chief Financial Officer, commented, “The extension of the Credit Facility’s maturity date to September 2026 and the $179 million of commitments provide significant flexibility for FET to fund organic and strategic growth. As of August 30, 2021, there were no borrowings outstanding under the facility and total availability was approximately $124 million. We appreciate the long-term partnership provided by our lending syndicate.”

FET (Forum Energy Technologies) is a global company, serving the oil, natural gas, industrial and renewable energy industries. FET provides value added solutions that increase the safety and efficiency of energy exploration and production. We are an environmentally and socially responsible company headquartered in Houston, TX with manufacturing, distribution and service facilities strategically located throughout the world. For more information, please visit www.f-e-t.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908006141/en/

Lyle Williams

Executive Vice President and Chief Financial Officer

713.351.7920

Lyle.Williams@f-e-t.com

Source: Forum Energy Technologies, Inc.

FAQ

What are the details of the credit facility amendment for Forum Energy Technologies (FET)?

The credit facility amendment includes an extension of the maturity to September 2026, a reduction in size from $250 million to $179 million, and a modification of interest rates to LIBOR plus a margin of 2.25% to 2.75%.

How does the credit facility amendment affect FET's financial flexibility?

The extension to September 2026 provides significant flexibility for Forum Energy Technologies to fund organic and strategic growth.

What was FET's liquidity status as of August 30, 2021?

As of August 30, 2021, Forum Energy Technologies had no outstanding borrowings and approximately $124 million in total availability under its credit facility.

Who are the joint lead arrangers for FET's credit facility amendment?

The joint lead arrangers for the credit facility amendment are Wells Fargo Bank, JPMorgan Chase Bank, and Bank of America.