MIDLAND, Texas, May 25, 2016 /PRNewswire/ -- CSI Compressco
LP (CSI Compressco or the Partnership) (NASDAQ: CCLP) today
announced it has completed an amendment to its Credit Agreement
with its lenders. The amendment provides additional flexibility for
the Partnership under the financial leverage ratio covenant
applicable to the revolving credit facility.
Prior to the amendment the maximum consolidated total leverage
ratio in the Credit Agreement was 5.25X as of June 30, 2016, declining to 5.00X from
September 30, 2016 and thereafter.
The amendment modified this leverage ratio as follows:
- 5.50X as of June 30, 2016 and
September 30, 2016;
- 5.75X from December 31, 2016
through September 30, 2017;
- 5.50X as of December 31, 2017 and
March 31, 2018;
- 5.25X as of June 30, 2018 and
September 30, 2018; and
- 5.00X from December 31, 2018 and
thereafter.
The amendment also reduced the maximum aggregate lender
commitments under the Credit Agreement from $400 million to $340
million, among other amendments. As of March 31, 2016 the Partnership had $234 million outstanding on the revolver.
Additional details on the amendment are included in the
Partnership's Form 8-K filed today with the Securities and Exchange
Commission.
"We are pleased with the outcome of this amendment
process. We believe it is prudent to obtain flexibility with
our revolving credit facility given the persistent weak industry
environment." said Timothy A. Knox,
President of CSI Compressco. "We are very appreciative of the
support from our lending group, arranged by Bank of America Merrill
Lynch. This amendment provides the Partnership with enhanced
ability to navigate through an uncertain energy marketplace."
About CSI Compressco
CSI Compressco is a provider of compression services and
equipment for natural gas and oil production, gathering,
transportation, processing, and storage. CSI Compressco's
compression and related services business includes a fleet of over
6,000 compressor packages providing in excess of 1.1 million in
aggregate horsepower, utilizing a full spectrum of low-, medium-,
and high-horsepower engines. CSI Compressco also provides well
monitoring and automated sand separation services in conjunction
with compression services in Mexico. CSI Compressco's equipment sales
business includes the fabrication and sale of standard compressor
packages, custom-designed compressor packages, and oilfield fluid
pump systems designed and fabricated primarily at our facility in
Midland, Texas. CSI Compressco's
aftermarket business provides compressor package reconfiguration
and maintenance services as well as the sale of compressor package
parts and components manufactured by third-party suppliers. CSI
Compressco's customers comprise a broad base of natural gas and oil
exploration and production, mid-stream, transmission, and storage
companies operating throughout many of the onshore producing
regions of the United States as
well as in a number of foreign countries, including Mexico, Canada, and Argentina. CSI Compressco is managed by CSI
Compressco GP Inc., which is an indirect, wholly owned subsidiary
of TETRA Technologies, Inc. (NYSE: TTI).
Forward Looking Statements
This press release contains "forward-looking statements" and
information based on our beliefs and those of our general partner,
CSI Compressco GP Inc. Forward-looking statements in this press
release are identifiable by the use of the following words and
other similar words: "anticipates", "assumes", "believes",
"budgets", "could", "estimates", "expects", "forecasts", "goal",
"intends", "may", "might", "plans", "predicts", "projects",
"schedules", "seeks", "should, "targets", "will" and "would".
These forward-looking statements include statements, other than
statements of historical fact, concerning CSI Compressco's
strategy, future operations, financial position, estimated
revenues, negotiations with our bank lenders, projected costs and
other statements regarding CSI Compressco's beliefs, expectations,
plans, prospects, and other future events and performance. Such
forward-looking statements reflect our current views with respect
to future events and financial performance and are based on
assumptions that we believe to be reasonable but such
forward-looking statements are subject to numerous risks and
uncertainties, including, but not limited to: economic and
operating conditions that are outside of our control, including the
supply, demand, and prices of crude oil and natural gas; the levels
of competition we encounter; the activity levels of our customers;
the availability of adequate sources of capital to us; our ability
to comply with contractual obligations, including those under our
financing arrangements; our operational performance; the loss of
our management; risks related to acquisitions and our growth
strategy, including our 2014 acquisition of Compressor Systems,
Inc.; the availability of raw materials and labor at reasonable
prices; risks related to our foreign operations; the effect and
results of litigation, regulatory matters, settlements, audits,
assessments, and contingencies; risks associated with a material
weakness in our internal control over financial reporting and the
consequences we may encounter if we are unable to remediate that
material weakness or if we identify other material weaknesses in
the future; information technology risks, including the risk of
cyberattack; and other risks and uncertainties contained in our
Annual Report on Form 10-K and our other filings with the U.S.
Securities and Exchange Commission ("SEC"), which are available
free of charge on the SEC website at www.sec.gov. The risks and
uncertainties referred to above are generally beyond our ability to
control and we cannot predict all the risks and uncertainties that
could cause our actual results to differ from those indicated by
the forward-looking statements. If any of these risks or
uncertainties materialize, or if any of the underlying assumptions
prove incorrect, actual results may vary from those indicated by
the forward-looking statements, and such variances may be material.
All subsequent written and oral forward-looking statements made by
or attributable to us or to persons acting on our behalf are
expressly qualified in their entirety by reference to these risks
and uncertainties. You should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks
only as of the date of the particular statement, and we undertake
no obligation to update or revise any forward-looking statements we
may make, except as may be required by law.
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SOURCE CSI Compressco LP