Natural Gas Services Group, Inc. Announces Closing of $20 Million Credit Facility with Texas Capital Bank
“With the recent challenges many of our oilfield peers have experienced in obtaining or renewing credit facilities, we are extremely pleased with our new credit relationship with
The obligations under the revolving credit facility are secured by a first lien on substantially all of the Company’s assets and are guaranteed by our subsidiaries. Outstanding loans will bear interest at a sliding scale based on our leverage ratio from LIBOR plus 1.25% to LIBOR plus 1.75% per annum. (The Company may also choose to borrow based on Texas Capital Bank’s “Base Rate” (generally, the prime rate) plus a margin of 0.25% to 0.75%). Additionally, the facility contains a fee for the unused revolving credit commitments of 0.25% per annum. At closing, the Company had no outstanding balance borrowed under the facility. The facility has an initial term of five years, maturing in May, 2026.
“The five-year term of the facility also provides for both stability and flexibility in our capital structure which affords NGS a competitive advantage into the future,” added Taylor. “We look forward to our new relationship with
NGS is a leading provider of gas compression equipment and services to the energy industry. The Company manufactures, fabricates, rents, sells and maintains natural gas compressors and combustion systems for oil and natural gas production and plant facilities. NGS is headquartered in
Cautionary Note Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause NGS's actual results in future periods to differ materially from forecasted results. Those risks include, among other things, the loss of market share through competition or otherwise; the introduction of competing technologies by other companies; a prolonged, substantial reduction in oil and gas prices which could cause a decline in the demand for NGS's products and services; and new governmental safety, health and environmental regulations and social initiatives which could require NGS to make significant capital expenditures or reduce our customers' demand for our products and services. Any forward-looking statements included in this press release are only made as of the date of this press release, and NGS undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. A discussion of these factors is included in the Company's most recent Annual Report on Form 10-K filed with the
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Source: Natural Gas Services Group, Inc.