FLOTEK INDUSTRIES INC/CN/ (FTK): debt financing — Flotek enters $10M ABL facility with Amerisource; CEO cites path to profitability

FLOTEK INDUSTRIES INC/CN/

$10M revolving credit facility based on 85% eligible AR and 60% inventory; potential $5M add-on via real estate pledge.
Interest at WSJ Prime + 2.5% p.a., 24-month term; includes 1% commitment fee, 0.25% non-usage fee, and 0.10% monthly collateral fee.
Proceeds for working capital and general corporate purposes; early termination fee of 2.5% or 1.5% of account limit.
CEO notes working capital improved from -$70M (year-end) to +$26M as of June 30, 2023.
Expects positive adjusted EBITDA before year-end; eight consecutive quarters of improving operating cash flow.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

FLOTEK INDUSTRIES INC/CN/ incurred revolving credit of up to $10 million of initial credit availability with Amerisource Funding, Inc. at Wall Street Journal Prime Rate (subject to a floor of 5.50%) plus 2.5% per annum maturing twenty-four month term.

Instrument: revolving credit
Principal: up to $10 million of initial credit availability
Counterparty: Amerisource Funding, Inc.
Rate: Wall Street Journal Prime Rate (subject to a floor of 5.50%) plus 2.5% per annum
Maturity: twenty-four month term
Event: incurrence

Exact text from the filing

The Loan Agreement provides for a twenty-four month term with up to $10 million of initial credit availability (the “Account Limit”) based on 85% of eligible accounts receivable and 60% of eligible inventory (not to exceed the amount of eligible accounts receivable).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

FLOTEK INDUSTRIES INC/CN/ entered into Loan Agreement with Amerisource Funding, Inc. valued at up to $10 million of initial credit availability (effective 2023-08-14).

Action: entry
Agreement: credit facility
Counterparty: Amerisource Funding, Inc.
Value: up to $10 million of initial credit availability
Effective: 2023-08-14

Exact text from the filing

On August 14, 2023, Flotek Industries, Inc. (the “Company”) entered into a revolving loan and security agreement (the “Loan Agreement”) with Flotek Chemistry, LLC and JP3 Measurement, LLC, wholly owned subsidiaries of the Company (collectively with the Company, the “Borrowers”), and Amerisource Funding, Inc. ( “Amerisource”), as lender.

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26 debt financings filed in the last 30 days. Browse all debt financings →

FLOTEK INDUSTRIES INC/CN/ filing history →

Source: SEC EDGAR

accession 0000928054-23-000158

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