Print Page  Close Window

SEC Filings

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

           Financing Arrangements

           During  1995,  WellTech  was not in  compliance  with  certain of the
restrictive  covenants of its Loan Agreement  with Shawmut and received  waivers
for such events of non compliance.  On January 19, 1996, WellTech entered into a
credit  agreement with a new lender,  the CIT  Group/Credit  Finance  ("CIT") to
refinance  certain  existing  indebtedness,  which enabled WellTech to repay all
indebtedness to Shawmut  (approximately $5 million).  The new indebtedness is in
the form of a three year revolving credit arrangement and a three year term loan
and is cross guaranteed by Key and cross  collateralized  by their assets.  Upon
consummation of the merger,  the new indebtedness will be the obligation of Key,
as survivor of the merger.  There are no restrictive  financial  covenants until
the merger is completed.  However, failure to consummate the merger by April 30,
1996,  may,  at the option of CIT,  constitute  an event of default if  WellTech
fails to refinance  this credit  facility by July 31,  1996,  or if Key fails to
continue to operate WellTech pursuant to the Interim Operations  Agreement until
such refinancing is completed.