Business Context and Reporting Period
This Form 8-K was filed by Flotek Industries, Inc. on April 28, 2017, reporting events occurring on that date. The filing details the entry into a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics
The filing does not provide specific values for revenue, profit, cash flow, margins, total debt, or liquidity positions. The document focuses exclusively on the terms of a credit agreement amendment rather than reporting period financial results.
Material Changes
On April 28, 2017, the Company entered into the Seventh Amendment to its Amended and Restated Revolving Credit, Term Loan and Security Agreement (effective March 31, 2017). Key changes include:
- Adjusted EBITDA Definition: Revised to include the loss from discontinued operations of the drilling technologies and production technologies businesses.
- CapEx Trigger Period: The threshold for undrawn availability required for the month-ends of April, May, and June 2017 was reduced to $10 million.
- Capital Expenditure Thresholds: The threshold for undrawn availability needed to incur certain defined levels of capital expenditures was reduced to $10 million for the month-ends of April, May, and June 2017.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the terms of the credit amendment. The Company agreed to pay fees and expenses of the Agent in connection with the Amendment. The full description of the Amendment is qualified by reference to Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 10.1 for the complete text of the Seventh Amendment and Sixth Amendment to the Credit Agreement.
- Verify the impact of the revised Adjusted EBITDA definition on the company's compliance with financial covenants.
- Confirm the current undrawn availability under the Credit Agreement to assess the $10 million threshold for capital expenditures.
- Check subsequent filings for the actual fees and expenses paid to the Agent.