Select Water Solutions prices $900M in senior notes due 2034

Select Water Solutions, Inc. (NYSE: WTTR) announced that its subsidiary, Select Water Holdings LLC, has priced an offering of $900 million in 7.625% senior notes due November 1, 2034, according to a company press release. The offering was upsized from an initial amount of $800 million.

The notes were priced at par and will pay interest at 7.625% per year, with payments due on May 1 and November 1 of each year. The first interest payment is scheduled for May 1, 2027. The offering is expected to close on October 21, 2026, subject to customary closing conditions.

The notes will be guaranteed on a senior unsecured basis by existing subsidiaries that are borrowers or guarantors under the company's revolving credit facility, as well as future restricted subsidiaries that guarantee certain indebtedness.

The company said it intends to use the net proceeds, along with cash on hand, to fund a portion of the cash consideration for its previously announced acquisition of Pilot Water Solutions LLC, to repay outstanding obligations under its term loan facility in full, to repay any outstanding loans under its existing revolving credit facility, to pay related fees and expenses, and for general corporate purposes.

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 would be required to redeem notes equal to the principal amount issued less $450 million at a redemption price of 100% of the issue price, plus accrued interest.

The notes have not been registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

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