Forbes Energy Services, Ltd. Appoints Joe Michetti as President and Co-Chief Operating Officer; Enters into New $35 Million ABL Facility
In order to fund the Cretic acquisition, Forbes entered into a new $35 million ABL facility with Regions Bank and (ii) amended and upsized its existing first lien term loan to receive an additional $60 million of term loan proceeds. Following the Cretic acquisition, the short term portion of Forbes' term loan, in the amount of $50 million, is expected to be repaid with proceeds from a planned offering of rights to purchase unsecured subordinated convertible debt securities to its existing shareholders on a pro rata basis. Forbes' two large shareholders have committed to purchase the debt securities underlying any rights that are not exercised by other shareholders. In the event Forbes does not consummate the planned rights offering within twelve months following the Cretic transaction, the short term portion of the term loan will automatically convert to unsecured subordinated convertible debt securities.