Select Water Solutions plans $800M senior notes offering for 2034

Select Water Solutions, Inc. (NYSE: WTTR) announced that its subsidiary, Select Water Holdings LLC, intends to offer $800 million in aggregate principal amount of senior notes due 2034, subject to market conditions.

The notes will be sold under Rule 144A and Regulation S of the Securities Act of 1933 to qualified institutional buyers and non-U.S. persons. They will be guaranteed on a senior unsecured basis by existing subsidiaries that are borrowers or guarantors under the company's revolving credit facility.

According to the press release, proceeds from the offering, combined with cash on hand and borrowings under a new revolving credit facility, are intended to fund a portion of the cash consideration for the previously announced acquisition of Pilot Water Solutions LLC. Additional proceeds will be used to repay outstanding obligations under the company's term loan facility, repay any outstanding loans under its existing revolving credit facility, cover related fees and expenses, and support general corporate purposes and working capital.

The offering is not contingent on the completion of the Pilot Water acquisition. If the acquisition is not completed by March 1, 2027, or if the acquisition agreement is terminated, the company will be required to redeem a portion of the notes equal to the total principal amount issued minus $450 million, at 100% of the issue price plus accrued interest.

The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without an applicable exemption from registration requirements.

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