Varel International Energy Services Completes Refinancing
Varel International Energy Services (VIES) and its subsidiaries, Varel International and Downhole Products Ltd, have completed their previously announced refinancing, totaling $325MM. The deal includes a $20MM revolving credit facility, a $220MM term loan and an $85MM mezzanine tranche. Credit Suisse took the lead in facilitating the deal on behalf of VIES.
The funding allows VIES to refinance the capital structure of the firm, bolster liquidity, fund general corporate purposes and cover associated fees and expenses.
“We are quite pleased to have been able to complete this refinancing in less than two months,” said VIES President and CEO Jim Nixon. “The consummation of this deal is an acknowledgement of the performance that has been achieved by both our Varel International and Downhole Products subsidiaries.”
Nixon continued, “This new financing structure will allow VIES the flexibility to more effectively pursue our goals of geographic and product line expansion and drive our continued market share growth.”
John Capasso, VIES Vice President and CFO added, “The refinancing provides VIES and its subsidiaries with long-term financing at a lower cost while improving the Company’s liquidity position.”
Source: www.varelintl.com