KLX Energy Services’s $250 Million High Yield Secured Notes Offering


Simpson Thacher represented the initial purchasers, led by J.P. Morgan Securities LLC, in connection with the debut high yield Rule 144A/Regulation S offering by KLX Energy Services Holdings, Inc. (“KLX Energy Services”) of $250 million aggregate principal amount of 11.5% Senior Secured Notes due 2025.

Simpson Thacher also represented the lead arrangers, led by JPMorgan Chase Bank, N.A., in connection with the concurrent amendment of KLX Energy Services’ $100 million asset-based revolving credit facility.

KLX Energy Services used a portion of the net proceeds of the offering to fund the cash consideration and other amounts payable in connection with the acquisition of Motley Services, LLC and its subsidiaries (“Motley”), and intends to use the remaining amount for general corporate purposes, which may include future acquisitions.

KLX Energy Services is a leading U.S. onshore provider of mission critical oilfield services focused on completion, intervention and production activities for the most technically demanding wells. Motley is a Permian-focused completion services company, primarily providing large-diameter coiled tubing services, wireline services and complementary completion services such as pump-down and thru-tubing.

The Simpson Thacher team included Art Robinson (Picture), Marisa Stavenas, Tony Rim, John O’Connell, Tracy Peng and Alex Yeagley (Capital Markets); Soogy Lee and Jonathan Pall (Security and Collateral); Robert Rabalais, Brandan Still and Deborah El-Schaeddhaei (Credit—Houston); Jon Cantor and Caroline Phillips (Tax); Alysha Sekhon (IP); Jeanne Annarumma and Andrew Mandelbaum (ECEB); Jennie Getsin (Blue Sky); and Tim Mulvihill (Environmental).

Involved fees earner: Jeanne Annarumma – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; Deborah El-Schaeddhaei – Simpson Thacher & Bartlett; Jennie Getsin – Simpson Thacher & Bartlett; Hyang-Sook Lee – Simpson Thacher & Bartlett; Andrew Mandelbaum – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; John O’Connell – Simpson Thacher & Bartlett; Jonathan Pall – Simpson Thacher & Bartlett; Tengteng Tracy Peng – Simpson Thacher & Bartlett; Caroline Phillips – Simpson Thacher & Bartlett; Robert René Rabalais – Simpson Thacher & Bartlett; Tony Rim – Simpson Thacher & Bartlett; Arthur Robinson – Simpson Thacher & Bartlett; Alysha Sekhon – Simpson Thacher & Bartlett; Marisa Stavenas – Simpson Thacher & Bartlett; Brandan Still – Simpson Thacher & Bartlett; Alexander Yeagley – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: JP Morgan Securities; JPMorgan Chase & Co.;

Author: Ambrogio Visconti