Company: NINE
Filing Date: 2025-05-07
Form Type: 8-K
Source: 0001193125-25-114963
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Company: Nine Energy Service, Inc.
Filing Date: 2025-05-07
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On May 1, 2025, Nine Energy Service, Inc. (the “ Company”) and certain of its subsidiaries entered into a Loan and Security Agreement (the “ New ABL Credit Agreement”) with White Oak Commercial Finance, LLC, as agent (the “ Agent”), and the lenders from time to time party thereto. The New ABL Credit Agreement provides for an asset-based revolving credit facility (the “ New ABL Credit Facility”) with lender commitments of $125 million (the “ Maximum Revolving Facility Amount”) and a sublimit of $5 million for letters of credit, which will mature on the earlier of (i) May 1, 2028 and (ii) the date that is 91 days prior to the maturity date of the Company’s 13.000% Senior Secured Notes due 2028 (the “ Notes”). The Maximum Revolving Facility Amount could increase from time to time pursuant to an uncommitted accordion by an aggregate amount for all such increases not to exceed $50 million.

The outstanding balance of the borrowings under the New ABL Credit Facility may not exceed in the aggregate at any time the lesser of (i) the Maximum Revolving Facility Amount reduced by certain customary reserves and (ii) the borrowing base, which is calculated on the basis of eligible accounts and inventory. In particular, the borrowing base is equal to: (a) 92.5% of the aggregate amount of eligible U. S. and Canadian billed accounts receivable, plus (b) the lesser of (x) 85% of the aggregate amount of eligible U. S. and Canadian unbilled accounts receivable and (y) $6 million, plus (c) the lesser of (x) 50% of the aggregate amount of eligible billed non-U. S. and non-Canadianaccounts receivable and (y) $3 million, plus (d) the lower of cost or market value of eligible inventory, multiplied by the lesser of (x) 70% and (y) 85% of the appraised net orderly liquidation value divided by the book value in respect of such inventory, and, in the case of inventory constituting raw materials, not to exceed a maximum sublimit of $1 million, plus (e) the lesser of (x) $5 million and (y) an amount equal to 5% of the borrowing base, minus (f) the aggregate amount of reserves,