Join        Login             Stock Quote

Flotek Industries (FTK) To Repurchase $50M In Convertible Notes, To Redeem Additional Notes

 December 31, 2012 09:22 AM

(By Balaseshan) Flotek Industries Inc. (NYSE: FTK), a diversified supplier of drilling and production related products and services, said it has entered into transactions to repurchase about $50 million of its outstanding convertible notes from existing holders.

The transactions, privately negotiated, provide for the company to repurchase $50.312 million of the outstanding notes from institutional holders for an average of about 100.59% of par value plus accrued interest.

The company will fund the repurchase with cash on hand and through its recently announced term loan under the $75 million credit facility with PNC bank. The transactions are scheduled to close on December 31, 2012.

[Related -Thursday Morning – A Lot More Earnings]

This repurchase leaves about $5 million of principal value of convertible notes that Flotek can redeem in February, 2013. The company plans to initiate the appropriate redemption process to do so in the coming weeks.

In addition, Flotek plans to provide notice to the underwriter of the original convertible notes of the redemption of such notes that will result in the return of shares lent to the underwriter in conjunction with the original convertible notes offering.

Upon conclusion of the redemption process, Flotek estimates it will have about $25 million of debt outstanding.

"With this repurchase, Flotek has reduced its debt by over $70 million in 2012 and over $120 million since March, 2009. Our outlook for the coming year suggests strong cash generation will allow us to continue to improve our balance sheet as well as fund strategic initiatives that enhance shareholder value," said John Chisholm, Chief Executive of Flotek.

[Related -Mixed Day, But Stocks Keep Pressing Higher]

FTK closed Friday's regular session up 0.26% at $11.75. The stock has been trading between $8.46 and $14.73 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

A Very Good Day Technically
More Articles on: Oils/Energy

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.