Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 71

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 terminated and replaced 2018 ABL Credit Facility and pay fees and expenses associated with the entry into the 2025 ABL Credit Agreement. The 2025 ABL Credit Agreement contains customary representations and warranties, events of default, and various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other restricted payments and investments (including acquisitions). In addition, the 2025 ABL Credit Agreement contains a financial covenant requiring a minimum fixed charge ratio of 1.10 to 1.00 that is tested quarterly when the availability under the 2025 ABL Credit Facility is less than $10.0 million. This financial covenant applies until the availability exceeds such threshold for 30 consecutive days. The Company was in compliance with all covenants contained in the 2025 ABL Credit Agreement at June 30, 2025.The Company’s obligations under the 2025 ABL Credit Facility are secured by a first priority security interest in substantially all tangible and intangible assets of the Company and all of its current domestic and Canadian subsidiaries. At June 30, 2025, the Company had $49.4 million outstanding borrowings under the 2025 ABL Credit Facility, and its availability under the 2025 ABL Credit Facility was approximately $51.3 million. In July 2025, the Company borrowed an additional $13.4 million under the 2025 ABL Credit Facility.Short-Term DebtFrom time to time, the Company renews certain insurance policies and finances the premium for its excess policy. The outstanding balance on these premiums was $0.9 million and $3.6 million at June 30, 2025 and December 31, 2024, respectively.Fair Value of Debt InstrumentsThe estimated fair value of the Company’s debt obligations at June 30, 2025 and December 31, 2024 was as follows: June 30, 2025December 31, 2024 (in thousands)2028 Notes$148,260 $197,283 2025 ABL Credit Facility$49,362 $— 2018 ABL Credit Facility$— $47,000 Short-term debt$913 $3,580 The fair value of the 2028 Notes, 2025 ABL Credit Facility, 2018 ABL Credit Facility