Flotek Secures $120 Million Senior Secured Term Loan to Support Continued Strategic Growth
The financing adds committed funding while leaving a further $30 million of borrowing subject to lender consent.
Rhea-AI Summary
Flotek (FTK) entered a secured term loan agreement on September 23, 2026, with $75 million funded at closing.
The loan includes $15 million in committed delayed-draw funding available through June 30, 2027. Another $30 million is available through March 31, 2028, subject to lender consent. The loan matures September 23, 2031. Elda River Capital Management is the lead lender.
Flotek expects to use the proceeds for Data Analytics capital spending, refinancing its existing $40 million term loan, working capital and general corporate purposes. Its existing asset-based loan remains in place with up to $20 million of borrowing capacity. That loan’s maturity was extended from October 31, 2026, to October 31, 2027.
Positive
- $75 million funded at closing under the new term loan.
- $20 million asset-based loan capacity retained; maturity extended to October 31, 2027.
Negative
- $30 million of delayed-draw availability requires lender consent.
News Explained
For the first two years, the new term loan requires no amortization and no excess-cash sweep, so neither repayment mechanism is required during that period.
Key Figures
- Total loan availability
- Up to $120 million
- New secured term loan
- Funding at closing
- $75 million
- New secured term loan
- Committed delayed-draw availability
- $15 million
- Available through June 30, 2027
- Additional delayed-draw availability
- $30 million
- Subject to lender consent; available through March 31, 2028
- Existing term loan to be refinanced
- $40 million
- Use of proceeds
- Additional asset-based borrowing capacity
- Up to $20 million
- Maturity extended from October 31, 2026 to October 31, 2027
- Term loan maturity
- September 23, 2031
- New secured term loan
- Amortization and excess cash sweep
- None required during the first two years
- New secured term loan
Key Terms
delayed-draw financial
asset-based loan financial
excess cash sweep financial
bookrunner financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
With up to
The Company's existing asset-based loan will remain in place, providing up to
Term Loan Details
- Initial funding of
$75 million $15 million $30 million - Maturity date of September 23, 2031
- No loan amortization or excess cash sweep required during first two years
"This financing provides Flotek with long-term capital and additional flexibility to invest in our key growth initiatives," said Ryan Ezell, Chief Executive Officer of Flotek. "It also reflects our lenders' confidence in our corporate strategy, differentiated technology platform, and long-term opportunities across both data analytics and chemistry technologies. We look forward to developing a long-term partnership with Elda River as the lead capital provider in this financing."
"We are pleased to partner with Flotek to provide the Company with a flexible capital solution to support its strategic objectives," said Craig Rohr, Partner and Co-Founder at Elda River. "Flotek has a diversified portfolio of growth opportunities across the energy ecosystem, and we look forward to supporting the business over time."
The Company engaged Piper Sandler and Co. to act as sole and exclusive lead arranger and bookrunner for the transaction.
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data technology company focused on serving the Energy industry. The Company's technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, over 20 years of field and laboratory data, and a global presence in more than 59 countries.
Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.
Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK." For additional information, please visit www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). These statements include, without limitation, statements regarding Flotek Industries, Inc.'s business, financial condition, results of operations and prospects, including the expected benefits of the term loan agreement, the anticipated use of proceeds, the availability and timing of delayed-draw commitments, and the Company's growth strategy and investment plans, including with respect to its Data Analytics segment. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include, among others, the Company's ability to satisfy conditions precedent to future delayed-draw borrowings and to obtain lender consent for additional delayed-draw availability, risks related to the Company's growth strategy and capital expenditure plans, and competitive and market conditions in the energy industry. Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the "Risk Factors" section thereof), and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
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SOURCE Flotek Industries, Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much of Flotek's term loan is available without further lender consent?
$75 million was funded at closing, and $15 million in committed delayed-draw funding is available through June 30, 2027. An additional $30 million is available through March 31, 2028, subject to lender consent.
Does Flotek's new term loan require principal payments in its first two years?
No loan amortization or excess cash sweep is required during the first two years of the term loan.