A senior secured asset-based lending credit facility is a line of borrowing that a company obtains by pledging specific assets—like cash, inventory or customer invoices—as security, and that ranks ahead of other debts for repayment if the company defaults. Think of it as a high-priority, secured overdraft where lenders get first claim on pledged assets; investors watch it because it affects a company’s available cash, borrowing cost and who gets paid first in a distress scenario.
asset-based lendingfinancial
Asset-based lending is a type of loan where a borrower uses tangible assets — such as inventory, accounts receivable, equipment, or real estate — as collateral to secure credit. For investors, it matters because the quality and liquidity of the pledged assets affect the lender’s risk and the borrower’s borrowing capacity; like borrowing against items in a pawnshop, stronger assets generally mean safer loans and clearer recovery options if the borrower defaults.
letters of creditfinancial
A letter of credit is a promise from a bank to pay a seller if the buyer fails to do so, commonly used in trade and large contracts to ensure payment. Think of it as a bank standing in for the buyer, like a certified check or payment insurance that reduces the risk of nonpayment. For investors, letters of credit matter because they affect a company’s cash flow, borrowing needs and contingent liabilities, and signal how much credit support a business requires to secure deals.
Form 8-Kregulatory
A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.
HOUSTON--(BUSINESS WIRE)--
Forum Energy Technologies, Inc. (NYSE: FET) announced today it has entered into an amendment to its senior secured asset-based lending credit facility (“Credit Facility”). Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A., and Bank of America, N.A., acted as joint lead arrangers and joint book runners. Wells Fargo Bank, National Association, will continue to act as the administrative agent.
Lyle Williams, Executive Vice President and Chief Financial Officer, remarked, “This amendment further strengthens FET’s balance sheet, and we appreciate our bank group’s support. The Credit Facility commitments of $250 million provide significant flexibility for FET to fund strategic initiatives, including long-term debt retirement, organic investments and acquisition opportunities. We are focused on our pursuit of realizing FET 2030.”
The amendment’s key elements include: (i) the maturity has been extended, subject to certain exceptions, to February 2031; (ii) the total amount of letters of credit that may be issued was increased to $110 million; and (iii) interest rates on borrowings outstanding were modified to an excess availability-based structure with improved pricing. The full text of the amended Credit Facility will be filed with the U.S. Securities and Exchange Commission on a Current Report on Form 8-K.
FET is a global manufacturing company, serving the oil, natural gas, defense, and renewable energy industries. With headquarters in Houston, Texas, FET provides value added solutions aimed at improving the safety, efficiency, and environmental impact of our customers’ operations. For more information, please visit www.f-e-t.com.
