Company: NINE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001532286-25-000026
Chunk: 71

Company: Nine Energy Service, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 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 September 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 September 30, 2025, the Company had $63.3 million outstanding borrowings under the 2025 ABL Credit Facility, and its availability under the 2025 ABL Credit Facility was approximately $25.9 million.Short-Term DebtFrom time to time, the Company renews certain insurance policies and finances the premium for its excess policy. There was no outstanding balance on these premiums at September 30, 2025, and the outstanding balance on these premiums was $3.6 million at December 31, 2024.Fair Value of Debt InstrumentsThe estimated fair value of the Company’s debt obligations at September 30, 2025 and December 31, 2024 was as follows: September 30, 2025December 31, 2024 (in thousands)2028 Notes$149,280 $197,283 2025 ABL Credit Facility$63,258 $— 2018 ABL Credit Facility$— $47,000 Short-term debt$— $3,580 The fair value of the 2028 Notes, 2025 ABL Credit Facility, 2018 ABL Credit Facility, and short-term debt is classified as Level 2 in the fair value hierarchy. The fair value of the 2028 Notes is established based on observable inputs in less active markets. The fair value of the 2025 ABL Credit Facility, 2018 ABL Credit Facility, and short-term debt