Houston-based Nine Energy Service says it has completed a financial restructuring, cutting $320 million in debt as it emerges from Chapter 11 bankruptcy.
HOUSTON — Nine Energy Service says it has completed a financial restructuring process aimed at strengthening the company’s balance sheet and positioning it for long-term growth.
The Houston-based oilfield services company announced it has officially emerged from Chapter 11 bankruptcy after its court-approved reorganization plan took effect this week.
Chapter 11 process concludes
Nine and its U.S. and Canadian subsidiaries filed voluntary, prepackaged Chapter 11 cases on Feb. 1, in the U.S. Bankruptcy Court for the Southern District of Texas.
The court confirmed the company’s plan of reorganization on March 4, and the plan is now in effect as the company exits the bankruptcy process.
Debt reduction and new financing
The restructuring significantly reduced the company’s debt.
Nine said it lowered its secured debt by about $320 million and reduced its annual interest expenses by $40 million.
The company also secured new financing through an exit asset-based lending facility worth $135 million from existing lenders. Officials say the funding is intended to provide more financial flexibility as the company moves forward.
Company leadership highlights next phase
Company leadership says the restructuring marks a turning point for the business.
“Today marks the beginning of a new chapter for Nine as we move forward financially stronger, better positioned for future growth,” said Ann Fox, president and chief executive officer of Nine Energy Service, Inc.
“With our financial restructuring process complete, Nine now has greater optionality and flexibility to support our success and enable us to continue providing customers with exceptional services safely and efficiently. I am grateful to our talented Nine team for their continued hard work and commitment, as well as our customers and vendors for their support and partnership throughout this process. I am confident that Nine has a bright future ahead.”
Advisors involved in the restructuring
Several firms advised the company and its stakeholders during the restructuring process.
Nine was advised by Kirkland & Ellis LLP and Kane Russell Coleman Logan PC as legal counsel, Moelis & Company as investment banker, and FTI Consulting as financial and communications advisors.
Certain noteholders under the company’s senior secured notes indenture were advised by Milbank LLP as legal counsel and Houlihan Lokey as investment banker.
The company’s asset-based lending lenders were advised by Paul Hastings LLP.
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