Business Context and Reporting Period
Company: Oil States International, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 30, 2003
Event: Entry into and closing of a new credit agreement.
Key Financial Metrics
This filing reports on a financing event rather than periodic operating results. Specific revenue, profit, cash flow, or margin data is not provided in this document.
- New Credit Facility: $225,000,000 revolving credit facility.
- Expansion Option: Option to increase maximum borrowings to $250,000,000 prior to maturity.
- Maturity Date: October 30, 2007.
- Interest Rate Structure: LIBOR or benchmark rate plus an applicable margin based on the Company's leverage ratio.
- Collateral: Secured by a pledge of substantially all assets of the Company and its subsidiaries.
- Guarantees: Obligations guaranteed by significant subsidiaries.
Material Changes
The primary material change is the refinancing of existing bank indebtedness through the new Credit Agreement with Wells Fargo Bank Texas, National Association and other lenders. The filing does not provide comparative financial data against prior periods.
Guidance, Outlook, and Risks
Use of Proceeds: Funds will be used to refinance existing bank indebtedness, fund future acquisitions, and for general corporate purposes.
Covenants: The agreement contains customary financial covenants and requires a quarterly commitment fee on unused commitments based on the leverage ratio.
Risks: The filing notes that the summary is qualified in its entirety by reference to the full Credit Agreement (Exhibit 10.12). The filing text does not provide specific details on risk factors beyond the standard covenants and collateral requirements.
Investor Verification Checklist
- Review Exhibit 10.12 for the specific terms of the financial covenants and leverage ratio definitions.
- Verify the exact amount of existing bank indebtedness being refinanced.
- Confirm the current leverage ratio to determine the applicable interest margin and commitment fees.
- Assess the impact of the asset pledge on future borrowing capacity or operational flexibility.