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ProFrac Holding Corp. Completes Refinancing of Senior Secured Term Loan and Enhances Financial Flexibility
ACDCProFrac (ACDC) Prnewswire·2023-12-27 21:50

Core Viewpoint - ProFrac Holding Corp. has successfully completed a refinancing of its existing Senior Secured Term Loan and other debts, totaling 885million,whichwillmaturein2029,positioningthecompanyforastrongperformancein2024[1][2].FinancialOverview−Therefinancingincludesa885 million, which will mature in 2029, positioning the company for a strong performance in 2024 [1][2]. Financial Overview - The refinancing includes a 365 million Alpine Term Loan and 520millioninServicesSeniorSecuredNotes,aimedatpayingoffexistingdebtsandprovidingastablefinancialplatform[4][7].−Thetransactioniscashneutralandmaintainsliquidityforworkingcapitaltosupportexpectedincreasedactivityin2024[2][3].−Therefinancingeliminatesmaterialnear−termmaturities,providingadditionalrunwayforde−leveraging[2][4].StrategicFocus−ProFracplanstoincreaseutilizationofitsproppantandstimulationassetsthroughadiversifiedcommercialapproachin2024[2][3].−Thecompanyaimstobuildastrongfoundationinitsproppantsegmenttomaximizeshareholdervalue[3].DebtStructure−TheAlpineTermLoanhasafloatinginterestrateandrequiresmandatoryprincipalpaymentsstartinginmid−2024,withamaturitydateofJanuary26,2029[5][6].−TheServicesSeniorSecuredNotesalsobearafloatinginterestrateandhavesimilarmandatoryprepaymentschedules,withamaturitydatein2029[7].−TheABLCreditFacilityhasbeenamendedtoreduceitsmaximumcapacityfrom520 million in Services Senior Secured Notes, aimed at paying off existing debts and providing a stable financial platform [4][7]. - The transaction is cash neutral and maintains liquidity for working capital to support expected increased activity in 2024 [2][3]. - The refinancing eliminates material near-term maturities, providing additional runway for de-leveraging [2][4]. Strategic Focus - ProFrac plans to increase utilization of its proppant and stimulation assets through a diversified commercial approach in 2024 [2][3]. - The company aims to build a strong foundation in its proppant segment to maximize shareholder value [3]. Debt Structure - The Alpine Term Loan has a floating interest rate and requires mandatory principal payments starting in mid-2024, with a maturity date of January 26, 2029 [5][6]. - The Services Senior Secured Notes also bear a floating interest rate and have similar mandatory prepayment schedules, with a maturity date in 2029 [7]. - The ABL Credit Facility has been amended to reduce its maximum capacity from 400 million to $325 million [8]. Advisory and Legal Support - Piper Sandler & Co acted as the sole financial advisor, while Gibson, Dunn & Crutcher LLP and Brown Rudnick LLP provided legal counsel for the refinancing [9].