Oil States International Signs New Credit Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Businesswire
- Credit Agreement Update: Oil States International's newly signed Cash Flow Credit Agreement provides total commitments of $125 million, including a $75 million revolving credit facility and a $50 million multi-draw term loan, which is expected to enhance the company's liquidity and financial flexibility.
- Interest Rate Structure: Borrowing rates under the agreement are set at Term SOFR plus a margin of 2.50% to 3.50% or a base rate plus 1.50% to 2.50%, depending on the company's net leverage ratio, which will impact financing costs and profit margins.
- Asset Collateralization: Obligations under the credit agreement are secured by a pledge of nearly all of the company's and guarantors' assets located in the U.S., ensuring creditor rights while reflecting the company's asset management capabilities and commitment to financial stability.
- Debt Management Strategy: The company intends to extinguish the remaining 2026 convertible senior notes using a combination of cash on hand and borrowings under the credit agreement, demonstrating a proactive approach to debt management aimed at reducing financial risk and optimizing capital structure.
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Analyst Views on OIS
Wall Street analysts forecast OIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OIS is 9.00 USD with a low forecast of 8.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 8.390
Low
8.00
Averages
9.00
High
10.00
Current: 8.390
Low
8.00
Averages
9.00
High
10.00
About OIS
Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment and consumable products. It segments include Offshore Manufactured Products, Completion and Production Services, and Downhole Technologies. The Offshore Manufactured Products segment designs, manufactures and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels, along with short-cycle and other products. The Completion and Production Services segment includes a range of equipment and services used to establish and maintain the flow of oil and natural gas from a well throughout its life cycle. The Downhole Technologies segment provides oil and gas perforation systems and downhole tools in support of completion, intervention, wireline and well abandonment operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oil States International Amends Credit Agreement with $125 Million Commitments
- Credit Agreement Amendment: Oil States International has announced an amended Cash Flow Credit Agreement with total commitments of $125 million, including a $75 million revolving credit facility and a $50 million multi-draw term loan, which is expected to enhance the company's liquidity and financial flexibility.
- Interest Rate Structure: Under the Cash Flow Credit Agreement, borrowings will bear interest at Term SOFR plus a margin of 2.50% to 3.50% or at a base rate plus a margin of 1.50% to 2.50%, ensuring manageable financing costs under varying market conditions.
- Asset Collateralization: The outstanding obligations under the credit agreement are secured by a pledge of nearly all assets of the company and guarantors located in the U.S., along with stock of certain foreign subsidiaries, which enhances creditor security and reduces financing risks.
- Future Debt Repayment Plans: The company intends to utilize cash on hand and borrowings under the credit agreement to extinguish the remaining 2026 convertible senior notes, ensuring a robust financial structure and optimizing its capital framework.
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Oil States International Secures $125M Credit Agreement
- Credit Agreement Signed: Oil States International announced a new credit agreement with total commitments of $125 million, including a $75 million revolving credit facility and a $50 million multi-draw term loan, which is expected to enhance the company's liquidity and financial flexibility.
- Convertible Bond Buyback: The company repurchased $50 million of its 4.75% convertible senior notes in Q4 2025, with $53 million remaining outstanding at year-end, and plans to retire the remaining debt using cash and credit facility borrowings, thereby reducing financial costs.
- Cash Flow Position: Currently, the company has $70 million in cash and no outstanding borrowings, which supports its future investment and operational needs, enhancing market confidence in its financial health.
- Growth Outlook: Oil States anticipates revenue growth of 8% to 13% in Q4 2025, primarily driven by offshore bookings, indicating positive progress in its long-term growth strategy.
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