TETRA Technologies Inc. (NYSE: TTI) has entered into a formal agreement with affiliates of GSO Capital Partners LP that will provide TETRA with both liquidity and an additional platform to continue its growth initiatives. TETRA and GSO entered into a note purchase agreement relating to the issuance of $125 million of 11% senior notes maturing in seven years. The senior notes will be sold to GSO in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended.
The closing and funding are anticipated in the next two weeks. TETRA will use proceeds from the financing to repay $90 million in senior notes due April 2016 and the balance to repay other debt and transaction fees.
Simultaneously with the GSO agreement, TETRA also entered into a second amendment to the note purchase agreement with Wells Fargo Energy Capital Inc. to extend the maturity date of the company's $50 million senior secured notes from April 1, 2017, to April 1, 2019, effective upon the closing and funding of the GSO financing.
TETRA also announced today that it has begun a cash tender offer for up to $25,000,000 aggregate principal amount of its outstanding 5.09% senior notes, Series 2010-A, due Dec. 15, 2017, and 5.67% senior notes, Series 2010-B, due Dec. 15, 2020. TETRA issued the notes in September 2010, pursuant to a transaction exempt from the registration requirements of the Securities Act, in an aggregate principal amount of $90,000,000, all of which is outstanding as of the date hereof. The tender offer is being made pursuant to the offer to purchase, dated Nov. 5, 2015, and a related letter of transmittal. The tender offer is scheduled to expire immediately after 11:59 p.m., Eastern Time, on Dec. 4, unless extended by the company.