KLX Energy Services Holdings, Inc. (NASDAQ: KLXE) announced preliminary results of its subscription rights offering, which expired Sept. 23, 2026, with the company expecting to issue approximately 24,975,001 shares of common stock at $1.49 per share.

According to Computershare Trust Company, N.A., the subscription agent, 6,385,123 basic subscription rights were exercised to purchase 24,806,099 shares, with an additional 168,902 shares subscribed for through the over-subscription privilege.

The offering is expected to generate $37.2 million in gross proceeds. KLX said it plans to use $31.0 million for general corporate purposes, including fees and expenses related to the offering, and $6.2 million to redeem its Senior Secured Floating Rate Cash/PIK Notes due 2030 (the "2030 Notes") at par, plus accrued and unpaid interest.

The offering was backstopped by existing holders of the 2030 Notes, with an initial aggregate backstop commitment of $94.0 million, later reduced to $87.8 million after the $6.2 million redemption. The backstop parties agreed to exchange their 2030 Notes for common stock at the $1.49 subscription price, with each party subject to a 30% ownership cap on a pro forma fully diluted basis.

Approximately 59.3 million shares of common stock will be issued to the backstop parties through the exchange. Following the rights offering and the backstop exchange, KLX expects to have approximately 105.7 million shares of common stock outstanding, and the outstanding principal of the 2030 Notes will be reduced by $94.0 million.

The subscription agent is expected to distribute shares and proceeds on or about Sept. 29, 2026, subject to customary closing conditions. Upon completion of the backstop exchange, KLX said it will enter into an amended and restated indenture governing the 2030 Notes.