Company: NINE
Filing Date: 2025-05-07
Form Type: 8-K
Source: 0001193125-25-114963
Chunk: 1

Company: Nine Energy Service, Inc.
Filing Date: 2025-05-07
Form: 8-K
Item: Item 1.01
Chunk 1
---
 if any, established by the Agent.

Borrowings under the New ABL Credit Facility bear interest at a per annum rate equal to the term-specific Secured Overnight Financing Rate (SOFR) for an interest period of one month, subject to a 1.50% floor, plus an applicable margin of 4.00% to 4.50%, depending on the Company’s fixed charge coverage ratio.

The Company’s obligations under the New 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. In connection with the entry into the New ABL Credit Agreement, the Agent entered into a joinder to the Intercreditor Agreement, dated as of January 30, 2023 (the “ Intercreditor Agreement”), among the Company, the subsidiaries of the Company party thereto and U. S. Bank Trust Company, National Association, as collateral agent with respect to the Notes, which provided for the replacement and refinancing of the Prior ABL Credit Facility (as defined below) with the New ABL Credit Facility while maintaining the lien and other priorities set forth in the Intercreditor Agreement.

The New 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 New 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 New ABL Credit Facility is less than $10 million and applies until the availability exceeds such threshold for 30 consecutive days.

The New ABL Credit Facility refinanced and replaced the Company’s asset-based revolving credit facility with JPMorgan Chase Bank, N. A., as administrative agent, and a consortium of lenders (the “ Prior ABL Credit Facility”), which had a scheduled maturity of January 29, 2027. On May 1, 2025, the Company borrowed approximately $48.9 million under the New ABL Credit Facility and used such proceeds to repay all borrowings outstanding under the Prior ABL Credit Facility and pay the approximately $5 million of fees and expenses associated with the entry into the New ABL Credit Agreement.

The foregoing description of the New ABL Credit Facility is not complete and