ChampionX Corporation (NASDAQ: CHX) saw its shares straddle the breakeven level Tuesday, on word 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 seven-year term loan B and a $700-million five-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.
Said CEO Sivasankaran “Soma” Somasundaram, “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.”
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.
ChampionX boasts a status as 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.
CHX shares acquired two cents to $24.65.
