Forum Energy Technologies, Inc. announced the successful closing of its offering of $100.0 million aggregate principal amount of 10.5% senior secured bonds on November 8, 2024. These bonds are structured to mature in November 2029 and were issued at par, providing long-term financing for the company.
The net proceeds from this offering, combined with existing cash on hand, were strategically deployed to repay all outstanding borrowings under the seller term loan associated with the Variperm Energy Services acquisition. This action addresses a key financial obligation stemming from a prior acquisition.
Furthermore, the proceeds were used to redeem in full all outstanding 9.000% Convertible Senior Secured Notes due 2025, effectively discharging FET's obligations under that indenture. Neal Lux, President and CEO, stated that this offering fortifies the balance sheet and provides flexibility for strategic investments, including potential M&A and share repurchases.
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