Flotek Industries entered into a new secured term loan agreement providing $75 million of funding at closing and up to $45 million of delayed-draw availability. Elda River Capital Management is the lead lender under the new financing, with additional investors including an affiliate of Antarctica Capital.
With up to $120 million in capital, the term loan provides the company with enhanced liquidity and financial flexibility to support strategic initiatives and future growth opportunities. Proceeds are expected to be used to support capital expenditures related to the company’s growing Data Analytics segment, refinance the company’s existing $40 million term loan, fund working capital requirements, and other general corporate purposes.
The company’s existing asset-based loan will remain in place, providing up to $20 million of additional borrowing capacity, with its maturity extended from October 31, 2026 to October 31, 2027.
Term Loan Details
- Initial funding of $75 million with $15 million committed delayed-draw available through June 30, 2027 and an additional $30 million subject to lender consent available through March 31, 2028
- Maturity date of Sept. 23, 2031
- No loan amortization or excess cash sweep required during first two years
“This financing provides Flotek with long-term capital and additional flexibility to invest in our key growth initiatives,” Ryan Ezell, CEO of Flotek, said. “It also reflects our lenders’ confidence in our corporate strategy, differentiated technology platform, and long-term opportunities across both data analytics and chemistry technologies. We look forward to developing a long-term partnership with Elda River as the lead capital provider in this financing.”
Craig Rohr, partner and co-founder at Elda River, added, “We are pleased to partner with Flotek to provide the company with a flexible capital solution to support its strategic objectives. Flotek has a diversified portfolio of growth opportunities across the energy ecosystem, and we look forward to supporting the business over time.”
The company engaged Piper Sandler and Co. to act as sole and exclusive lead arranger and bookrunner for the transaction.
