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SEC Filings

10-K
KEY ENERGY SERVICES INC filed this Form 10-K on 02/28/2018
Entire Document
 

The following table summarizes our cash flows for the year ended December 31, 2017, the period from December 16, 2016 through December 31, 2016 and the period from January 1, 2016 through December 15, 2016 (in thousands):
 
Successor
 
 
Predecessor
 
Year Ended December 31, 2017
 
Period from December 16, 2016 through December 31, 2016
 
 
Period from January 1, 2016 through December 15, 2016
Net cash used by operating activities
$
(51,367
)
 
$
(417
)
 
 
$
(138,449
)
Cash paid for capital expenditures
(16,079
)
 
(375
)
 
 
(8,481
)
Proceeds from sale of assets
32,992

 
124

 
 
15,025

Proceeds from notes receivable

 

 
 

Repayments of long-term debt
(2,500
)
 

 
 
(313,424
)
Proceeds from long-term debt

 

 
 
250,000

Payment of bond tender premium

 

 
 
109,082

Restricted cash
20,707

 
(15
)
 
 
(24,692
)
Payment of deferred financing costs
(350
)
 

 
 
(2,040
)
Other financing activities, net
(697
)
 

 
 
(167
)
Effect of changes in exchange rates on cash
(146
)
 

 
 
(20
)
Net decrease in cash and cash equivalents
$
(17,440
)
 
$
(683
)
 
 
$
(113,166
)
Debt Service
At December 31, 2017, our annual maturities on our indebtedness, consisting only of our Term Loan Facility at year-end, were as follows (in thousands):
 
Principal Payments
2018
$
2,500

2019
2,500

2020
2,500

2021
240,000

Total
$
247,500

ABL Facility
On December 15, 2016, the Company and Key Energy Services, LLC, as borrowers (the “ABL Borrowers”), entered into the ABL Facility with the financial institutions party thereto from time to time as lenders (the “ABL Lenders”), Bank of America, N.A., as administrative agent for the lenders, and Bank of America, N.A. and Wells Fargo Bank, National Association, as co-collateral agents for the lenders. The ABL Facility provides for aggregate initial commitments from the ABL Lenders of $80 million, which, on February 3, 2017 was increased to $100 million, and matures on June 15, 2021.
The ABL Facility provides the ABL Borrowers with the ability to borrow up to an aggregate principal amount equal to the lesser of (i) the aggregate revolving commitments then in effect and (ii) the sum of (a) 85% of the value of eligible accounts receivable plus (b) 80% of the value of eligible unbilled accounts receivable, subject to a limit equal to the greater of (x) $35 million and (y) 25% of the Commitments. The amount that may be borrowed under the ABL Facility is subject to increase or reduction based on certain segregated cash or reserves provided for by the ABL Facility. In addition, the percentages of accounts receivable and unbilled accounts receivable included in the calculation described above is subject to reduction to the extent of certain bad debt write-downs and other dilutive items provided in the ABL Facility.
Borrowings under the ABL Facility will bear interest, at the ABL Borrowers’ option, at a per annum rate equal to (i) LIBOR for 30, 60, 90, 180, or, with the consent of the ABL Lenders, 360 days, plus an applicable margin that varies from 2.50% to 4.50% depending on the Borrowers’ fixed charge coverage ratio at such time or (ii) a base rate equal to the sum of (a) the greatest of (x) the prime rate, (y) the federal funds rate, plus 0.50% or (z) 30-day LIBOR, plus 1.0% plus (b) an applicable margin that varies from 1.50% to 3.50% depending on the Borrowers’ fixed charge coverage ratio at such time. In addition, the ABL Facility provides for unused line fees of 1.0% to 1.25% per year, depending on utilization, letter of credit fees and certain other factors.
The ABL Facility may in the future be guaranteed by certain of the Company’s existing and future subsidiaries (the “ABL Guarantors,” and together with the ABL Borrowers, the “ABL Loan Parties”). To secure their obligations under the ABL Facility,

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