HOUSTON--(BUSINESS WIRE)--
Nine Energy Service, Inc. (“Nine” or the “Company”) (NYSE: NINE)
announced today that it has priced a private offering of $400 million in
aggregate principal amount of 8.75% senior unsecured notes due 2023 (the
“Notes”) at par.
Nine intends to use the net proceeds of this offering, together with
cash on hand and borrowings under a new credit facility to be entered
into in connection with the consummation of the previously announced
acquisition of Magnum Oil Tools International, LTD (the “Magnum
Acquisition”), to fully repay and terminate the term loan borrowings and
the outstanding revolving credit commitments under its existing credit
facility, fund the upfront cash purchase price of the pending Magnum
Acquisition and pay transaction fees and expenses. The Company expects
the offering of the Notes to close on October 25, 2018, subject to
customary closing conditions.
The Notes have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or any state securities laws and may
not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state laws. The Notes are being offered
and sold only to persons reasonably believed to be qualified
institutional buyers in the United States pursuant to Rule 144A under
the Securities Act and to certain non-U.S. persons outside the United
States in compliance with Regulation S under the Securities Act. This
press release is for informational purposes only and does not constitute
an offer to sell, or a solicitation of an offer to buy, nor shall there
be any sale of the Notes in any state or jurisdiction in which such
offer, solicitation or sale is unlawful.
About Nine Energy Service
Nine Energy Service is an oilfield services company that offers
completion and production solutions throughout North America. The
Company brings years of experience with a deep commitment to serving
clients with smarter, customized solutions and world-class resources
that drive efficiencies. Strategically located throughout the U.S. and
Canada, Nine continues to differentiate itself through superior service
quality, wellsite execution and cutting-edge technology. Nine is
headquartered in Houston, Texas with operating facilities in the
Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus,
Utica and throughout Canada.
Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are those
that do not state historical facts and are, therefore, inherently
subject to risks and uncertainties. Forward-looking statements also
include statements that refer to or are based on projections, uncertain
events or assumptions. The forward-looking statements included herein,
including those related to the Company’s securities offering and the
Magnum Acquisition, are based on current expectations and entail various
risks and uncertainties that could cause actual results to differ
materially from those forward-looking statements. Such risks and
uncertainties include, among other things, the general energy service
industry risks; volatility of crude oil and natural gas commodity
prices; a decline in demand for the Company’s services, including due to
declining commodity prices; the Company’s ability to implement price
increases or maintain pricing of its core services; the loss of, or
interruption or delay in operations by, one or more significant
customers; the loss of or interruption in operations of one or more key
suppliers; the adequacy of the Company’s capital resources and
liquidity; the Company’s ability to implement new technologies and
services; the incurrence of significant costs and liabilities resulting
from litigation; the loss of, or inability to attract, key personnel;
and other factors described in the “Risk Factors” and “Business”
sections of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2017 and the subsequently filed Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not
to place undue reliance on forward-looking statements, which speak only
as of the date hereof, and, except as required by law, the Company
undertakes no obligation to update those statements or to publicly
announce the results of any revisions to any of those statements to
reflect future events or developments.

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Nine Energy Service Contact:
Heather Schmidt, 281-730-5113
Director,
Investor Relations and Marketing
[email protected]
Source: Nine Energy Service, Inc.