Ranger Energy Services, Inc. Completes Acquisition of Assets of Basic Energy Services Following Chapter 11 Bankruptcy | Business
HOUSTON – (BUSINESS WIRE) – October 1, 2021–
Ranger Energy Services, Inc. (NYSE: RNGR) has completed the previously announced acquisition of certain assets of Basic Energy Services, Inc. and its subsidiaries through its controlled subsidiary Ranger Energy Acquisition, LLC. The assets were sold by Basic as part of its bankruptcy process. The asset purchase agreement was approved by the United States Bankruptcy Court on September 23, 2021. The purchase price of approximately $ 36.65 million was paid with the proceeds of the private placement described herein. below.
Stuart Bodden, President and CEO of Ranger said, “We are pleased with the purchase price for the assets of Basic and look forward to welcoming a number of Basic staff into the Ranger family. In addition to the assets, this transaction gives Ranger access to many talented field employees and managers who have worked at Basic. I also want to thank the Ranger team for their tireless work over the past two weeks to lay the groundwork for what I know to be a successful integration as we continue to create value for our shareholders. “
As previously announced, in connection with the acquisition, the Company’s controlled subsidiary, RNGR Energy Services, LLC, entered into a credit facility on September 27, 2021 with Eclipse Business Capital LLC as sole director and guarantee agent and Eclipse Business Capital SPV, LLC as Sole Lender, for a new $ 77.5 million credit facility comprising a $ 50 million revolving credit facility, a $ 12.5 million M&E term loan facility and a $ 15 million B term loan facility.
Concurrent with the closing of the acquisition, the Company also closed its previously announced private placement of $ 42 million of shares of its newly issued Series A convertible preferred shares to certain qualified investors.
In addition, in conjunction with the closing of the Acquisition, Ranger LLC and the Company completed the previously announced repurchase of the outstanding units of Ranger LLC and the corresponding shares of the Company’s Class B common stock held by affiliates of CSL. Capital Management, LP and Bayou Well Holdings Company, LLC for an equivalent number of Class A common shares of the Company. Following the repurchases, no Class B common shares of the Company are issued and outstanding.
The Company will hold a conference call to discuss the acquisition on October 4 at 10:30 a.m. Central Time (11:30 a.m. Eastern Time). To join the conference call from within the United States, participants can dial 1-833-255-2829. To join the conference call outside of the United States, participants can dial 1-412-902-6710. When prompted, please have the operator join the call from Ranger Energy Services, Inc. Participants are encouraged to connect to the webcast or join the conference call approximately ten minutes before the scheduled time. start. The Company will provide a presentation prior to the start of the conference call. To view the presentation or listen live on the web, please visit the Investor Center section of the Company’s website, http://www.rangerenergy.com.
An audio replay of the conference call will be available shortly after the call ends and will remain available for approximately seven days. It can be accessed by dialing 1-877-344-7529 within the United States or 1-412-317-0088 outside of the United States. The access code for the replay of the conference call is 10160762. The replay will also be available in the Investor Center section of the Company’s website shortly after the call ends and will remain available for approximately seven days. .
Piper Sandler acts as the Company’s exclusive financial advisor with respect to the acquisition of core assets and the exclusive placement agent with respect to debt financing and the private placement of preferred shares. Winston & Strawn LLP acts as legal counsel to the Company.
About Ranger Energy Services, Inc.
Ranger is an independent provider of well service platforms and related services in the United States, with a focus on unconventional horizontal well completion and production operations. Ranger also provides the services necessary to bring and maintain a well in production. The Processing Solutions segment is engaged in the rental, installation, commissioning, start-up, operation and maintenance of MRU units, stabilizers and liquid natural gas storage and ‘related equipment.
Caution regarding forward-looking statements
Certain statements in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements represent the expectations or beliefs of Ranger regarding future events and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are beyond the control of Ranger and which could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement is only valid as of the date on which it is made and, except as required by law, Ranger assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, events or the like. New factors appear from time to time, and it is not possible for Ranger to predict all of these factors. When reviewing these forward-looking statements, you should keep in mind the risk factors and other caveats in our filings with the Securities and Exchange Commission. Risk factors and other factors noted in Ranger’s filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement.
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CONTACT: J. Brandon Blossman
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: ENERGY OTHER OIL / GAS ENERGY
SOURCE: Ranger Energy Services, Inc.
Copyright Business Wire 2021.
PUB: 01/10/2021 18:27 / DISC: 01/10/2021 18:27
Copyright Business Wire 2021.