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SEC Filings

KEY ENERGY SERVICES INC filed this Form S-4/A on 03/08/1996
Entire Document

         The CIT line of  credit,  as  amended,  requires  monthly  payments  of
         interest at two and one-half  percent above the stated prime rate (9.0%
         at June 30,  1995 and 1994).  The  expiration  of the line of credit is
         December 31,1996.  The line of credit is collateralized by the accounts
         receivable  of Yale E. Key.  The line of credit has a maximum  limit of
         85% of available accounts receivable or $7 million,  whichever is less.
         At June 30, 1995, there was no credit line availability.

         The agreement with CIT includes certain restrictive covenants, the most
         restrictive of which  prohibits  Yale E. Key from making  distributions
         and declaring dividends on the Key Common Stock.

         (b) In March 1995, OEI entered into a loan agreement,  as amended, with
         Norwest Bank Texas, N.A. ("Norwest"). The loan agreement provides for a
         $7.5 million  revolving line of credit note subject to a borrowing base
         limitation (approximately $5.3 million at June 30, 1995). The borrowing
         base is  redetermined  on at least a semi-annual  basis.  The borrowing
         base is reduced by  approximately  $60,000  per month  through  October
         1997, the maturity of the note.  The note's  interest rate is Norwest's
         prime rate (9.0% at June 30, 1995) plus one-half  percent.  The note is
         secured by  substantially  all of the oil and gas properties of OEI and
         the pledge of certain  collateral  by current and former  officers  and
         directors of Key (see note 13). The note is also guaranteed by Key.

         The  loan  agreement   contains  various   restrictive   covenants  and
         compliance  requirements,  which  include (a)  prohibition  of OEI from
         declaring or paying  dividends on OEI's common stock,  (b) limiting the
         incurrence of  additional  indebtedness  by OEI, (c)  limitation on the
         disposition of assets and (d) various financial covenants.

         (c) In March 1995,  Clint Hurt Drilling  entered into a loan  agreement
         with Norwest.  The loan  agreement  provided for a $1 million term note
         and a $200,000  line of credit note.  The $1 million term note requires
         principal  payments of  approximately  $28,000 per month plus  interest
         with the first  payment due May 5, 1995 and monthly  thereafter  for 36
         months with a maturity date of April 1998.  The $200,000 line of credit
         note requires principal payments of $20,000 per month beginning July 5,
         1995,  plus  interest,  through its maturity in April 1996.  Both notes
         have an interest  rate of Norwest  prime rate (9.0% at June 30,  1995),
         plus 3/4 of one percent.  The notes are secured by all of the equipment
         of Clint Hurt Drilling and are guaranteed by Key. In addition, the loan
         agreement  contains  various   restrictive   covenants  and  compliance

As of June 30, 1995,  Key was not in  compliance  with various  covenants of its
loan  agreements.  Subsequent to June 30, 1995, Key has obtained  waivers of the
events of  non-compliance  from the various lenders.  Such waivers were obtained
either for the remaining term of the related loan or for a period  exceeding one