THE
WOODLANDS, Texas, Jan. 15,
2024 /PRNewswire/ -- TETRA Technologies, Inc.
("TETRA" or the "Company") (NYSE: TTI) announced that it has
entered into a definitive agreement with Silver Point Finance
("Silver Point" or "SPF") for a $265
million credit facility with a maturity of January 2030, consisting of a $190 million funded term loan and a $75 million delayed-draw term loan that will
refinance TETRA's existing term loan of $163
million and provide capital to advance TETRA's Arkansas bromine processing project. Pricing
on the new credit facility is SOFR (Secured Overnight
Financing Rate) +575 basis points, which is 50 basis points below
TETRA's existing term loan, reflecting TETRA's strong financial
position. The new credit facility closed and funded on January 12, 2024. TETRA used the proceeds to
repay in full the $163 million
balance of its prior credit facility, that was due September 2025, with approximately $15 million of additional cash added to the
balance sheet, net of transaction expenses.
TETRA anticipates that between its existing liquidity, which is
estimated at $142 million as of
January 12, 2024, and free cash flow
that is expected to be generated from its existing base business in
2024 and 2025, plus the $75 million
delayed draw term loan, that it has the required capital for the
proposed Arkansas bromine
processing project.
"We are very pleased to partner with Silver Point to refinance
our existing debt. Sourcing debt at more cost-effective rates than
our previous term loan and extending the maturity to January 2030 reflects TETRA's strong financial
position and highly favorable prospects. Silver Point is providing
the remaining capital we require to fund the bromine processing
project with the $75 million delayed
draw feature that TETRA can draw upon as we construct our bromine
processing facility," said Brady
Murphy, President and Chief Executive Officer of TETRA.
Anthony DiNello, Head of Silver
Point Finance, added, "We are pleased to partner with TETRA with
its strong energy and industrial services and products business and
to support the Company as it pursues its bromine expansion
initiatives to support their base business and growing low carbon
business. We believe TETRA's performance is a testament to the
strength of its product and service offerings, customer
relationships and execution capabilities."
Stifel, Nicolaus & Company, Incorporated served as sole
placement agent and financial advisor to the Company.
TETRA Overview
TETRA Technologies, Inc. is an energy
services and solutions company operating on six continents with a
focus on bromine-based completion fluids, calcium chloride, water
management solutions, frac flowback, and production well testing
services. Calcium chloride is used in the oil and gas, industrial,
agricultural, road, food, and beverage markets. TETRA is evolving
its business model by expanding into the low carbon energy markets
with its chemistry expertise, key mineral acreage, and global
infrastructure. Low carbon energy initiatives include
commercialization of TETRA PureFlow®, an ultra-pure
zinc bromide clear brine fluid for stationary batteries and energy
storage; advancing an innovative carbon capture utilization and
storage technology with CarbonFree to capture CO2 and
mineralize emissions to make commercial, carbon-negative chemicals;
and development of TETRA's lithium and bromine mineral acreage to
meet the growing demand for oil and gas products and energy
storage. Visit the Company's website at www.tetratec.com for
more information.
Silver Point Overview
For over 20 years, Silver Point
Finance has been an active participant in the direct lending
market, providing customized financing solutions to middle-market
companies across a broad range of industries. SPF's transactions
support acquisitions, refinancings, bridge loans, growth capital,
balance sheet restructurings and leveraged recapitalizations. Along
with its affiliates, SPF manages approximately $12 billion in investible capital and, in 2023,
agented or arranged approximately $6.2
billion in credit facilities. Silver Point Finance is the
direct lending business of Silver Point Capital, L.P., a leader in
global credit investing that oversees the management of more than
$25 billion in investible capital.
For more information, please visit www.silverpointfinance.com.
Cautionary Statement Regarding Forward Looking
Statements
This news release includes certain statements
that are deemed to be forward-looking statements. Generally, the
use of words such as "may," "see," "expectation," "expect,"
"intend," "estimate," "projects," "anticipate," "believe,"
"assume," "could," "should," "plans," "targets" or similar
expressions that convey the uncertainty of future events,
activities, expectations or outcomes identify forward-looking
statements that the Company intends to be included within the safe
harbor protections provided by the federal securities laws. These
forward-looking statements include statements concerning the terms
and conditions of the credit facility and delayed-draw term loan,
the potential cost of capital, the interest rate associated with
the credit facility, the length of time the credit facility may
remain outstanding, and the potential use of proceeds of amounts
borrowed including statements that the credit facility will provide
additional opportunities in the development of our Arkansas bromine project. We cannot assure you
that future developments affecting us will be those that we have
anticipated. Important risks and uncertainties that could cause
actual results to differ materially from our expectations include,
among others, risks and uncertainties relating to the aggregate
overall level of indebtedness that we incur and the terms and
conditions of any changes in our debt financing; risks and
uncertainties concerning the use of proceeds or the allocation and
uses of capital; risks and uncertainties related to fluctuations in
interest SOFR-based rates; risks and uncertainties concerning
whether the financial performance of the Company meets
expectations; and with respect to our Arkansas bromine project development
activities, including measured, indicated and inferred mineral
resources of lithium and bromine, risks and uncertainties about the
potential extraction of lithium and bromine from our Arkansas
Evergreen Brine Unit, the economic viability thereof, the demand
for such resources, the timing and costs of such activities, and
the expected revenues and profits from such activities. Therefore,
you are cautioned not to assume that all or any part of a mineral
resource exists, that it can be economically or legally
commercialized, or that it will ever be upgraded to a higher
category. These forward-looking statements are based on certain
assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current
conditions, expected future developments and other factors it
believes are appropriate in the circumstances. Such statements are
subject to a number of risks and uncertainties, many of which are
beyond the control of the Company. Investors are cautioned that any
such statements are not guarantees of future performances or
results and that actual results or developments may differ
materially from those projected in the forward-looking statements.
Some of the factors that could affect actual results are described
in the section titled "Risk Factors" contained in the Company's
Annual Reports on Form 10-K, as well as other risks identified from
time to time in its reports on Form 10-Q and Form 8-K filed with
the Securities and Exchange Commission. Investors should not place
undue reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date of the particular statement,
and the Company undertakes no obligation to update or revise any
forward-looking statements, except as may be required by law.
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SOURCE TETRA Technologies, Inc.