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SEC Filings

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

         During 1994, there were extensive  capital  expenditures,  acquisitions
and contributions to unconsolidated  operations  totalling  approximately  $17.3
million. These expenditures were funded from operations ($4.6 million), property
and equipment sales ($2.8  million),  proceeds from debt issuance ($5.5 million)
and sale of common stock ($4.5 million).

         WellTech  recently  entered into a new credit facility of approximately
$17.5 million (subject to certain advance  formulas) the proceeds of the initial
borrowings  of which  were  used to repay  substantially  all debt of  WellTech,
including debt to Shawmut, except debt to certain affiliates.  WellTech believes
that such  facility will provide  sufficient  funds to finance its operating and
capital  expenditure  needs  until the  Merger.  The New  Indebtedness  has been
cross-guaranteed   by  Key,   Yale  E.  Key,   Clint  Hurt  and   WellTech   and
cross-collateralized  by  their  respective  assets.  Upon  consummation  of the
Merger,  the New Indebtedness  will be the obligation of Key, as survivor of the
Merger, and Key's  subsidiaries,  Yale E. Key and Clint Hurt. The cross-guaranty
and  cross-   collateralization   arrangement   could,  if  the  Merger  is  not
consummated,  create  contingent  liabilities for each of Key and WellTech.  The
failure  to  consummate  the Merger on or prior to April 30,  1996 will,  at the
option of the lender,  constitute an event of default under the New Indebtedness
if WellTech  fails to refinance its credit  agreement on or before July 31, 1996
or Key fails to continue to operate WellTech pursuant to the Interim  Operations
Agreement  until such  financing.  Key and WellTech have agreed not to terminate
the  Interim  Operations  Agreement  without  the  consent of the  lender.  (See
"Business and Properties of Key--Recent Developments--New Indebtedness.")