CARROLLTON, Texas--(BUSINESS WIRE)--Varel International Energy Services (VIES) and its subsidiaries, Varel International and Downhole Products Ltd, have today launched a refinancing offering totaling $325MM. The offering includes a $20MM revolving credit facility, a $230MM term loan, and a $75MM mezzanine tranche. VIES has retained Credit Suisse to assist with the offering.
“Improvements in the credit markets have provided us with the opportunity to pursue refinancing under improved terms. The financial flexibility provided by this refinancing will better position VIES and its subsidiaries to service the robust markets for drill bits and casing accessories worldwide.”
Once subscribed the funds will be used to refinance the existing capital structure of the firm, bolster liquidity, fund general corporate purposes and cover associated fees and expenses.
Jim Nixon, VIES President and CEO, said, “Improvements in the credit markets have provided us with the opportunity to pursue refinancing under improved terms. The financial flexibility provided by this refinancing will better position VIES and its subsidiaries to service the robust markets for drill bits and casing accessories worldwide.”
About Varel International Energy Services
Varel International Energy Services is comprised of two primary operating units, Varel International and Downhole Products.
Founded in 1947, Varel International is the world's largest independent supplier of earth boring drill bits. Headquartered in Carrollton, Texas, Varel services oil & gas, mining, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits. The company employs more than 1,000 people and has manufacturing facilities in Houston, Texas; Matamoros, Mexico; Kurgan, Russia and Tarbes, France, as well as sales offices throughout the world. For more information, visit www.varelintl.com.
Downhole Products specializes in the design and manufacture of engineered tubular enhancement products for the global upstream oil and gas industries. Since 1994, Downhole Products has been developing and providing downhole solutions aimed at reducing torque and drag and improving casing running and cementing integrity. Downhole Products operates from offices located in Aberdeen, Houston, Kuala Lumpur and Bahrain. For further information visit: www.downhole.org.
Statements in this news release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. In particular, the sale transaction described is subject to certain risks and uncertainties, including the ability of the buyer to obtain financing, the ability to obtain all required regulatory approvals and the anticipated tax treatment of the sale and related transactions, as well as risks relating to any unforeseen liabilities, losses, declines in economic performance or future prospects. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.