Basic Energy Services (BAS), Creditors Make Progresss Towards Finalizing Terms of Deleveraging Transaction

October 17, 2016 11:13 AM EDT

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Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company, its secured term loan lenders and secured asset-based revolver lenders (collectively, the "Secured Lenders"), and certain of its unsecured bondholders have made substantial progress towards finalizing the terms of a deleveraging transaction. To enable all parties to finish documenting the terms of such transaction, the Company, its Secured Lenders, and certain of its unsecured bondholders have agreed to further extend the previously announced forbearance agreement and waivers as detailed below.

On September 28, 2016, the Company entered into an agreement with holders of over 81% of the 7.75% senior notes due 2019 (the "2019 Notes") to extend the previously announced forbearance agreement. Under the forbearance extension, such unsecured noteholders agreed to forbear from exercising their rights and remedies in connection with the interest payment default, including the right to accelerate any indebtedness, through October 16, 2016 (the "Forbearance Extension Period"). Additionally, the Company's Secured Lenders agreed to provide temporary waivers of certain existing and future defaults under the Term Loan and ABL Facility related, in part, to the missed interest payment.

During the Forbearance Extension Period, the Company and its creditors have made significant progress in their negotiations regarding a deleveraging transaction. To provide the Company with additional time to finalize the documentation of the deleveraging transaction, the Company has reached an agreement with holders of over 81% of the 2019 Notes to further extend the Forbearance Extension Period by eight days, through October 24, 2016, subject to certain terms and conditions (including the extension of the Forbearance Extension Period by the Company's secured term loan lenders and secured asset-based revolver lenders) (the "Additional Extension Period"). The Company's secured term loan lenders have also agreed to provide an extension of their temporary waiver through the Additional Extension Period. Furthermore, the Company has received a one-day extension of the temporary waiver with its secured asset-based revolver lenders and is seeking an additional extension of the temporary waiver through October 24, 2016. The October 15, 2016 interest payment on the 7.75% senior notes due 2022 has not been paid. The indenture pursuant to which these notes were issued provides a grace period of 30 days before this non-payment constitutes an event of default thereunder.

Roe Patterson, Basic's President and Chief Executive Officer, reiterated, "We are very pleased with the progress we have made to date in our restructuring discussions with Basic's creditors. We believe that we are close to finalizing the terms of a financial restructuring plan that will leave the Company well capitalized and positioned for strong growth."

The Company continues to have, and expects to have, adequate liquidity to continue its efficient and uninterrupted operations in the ordinary course and to meet all of its obligations to suppliers, customers and employees.



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