Natural Gas Services Group Announces Expansion of Credit Facility

Rhea-AI Summary

Natural Gas Services Group (NGS), a leading provider of natural gas compression equipment, has expanded its existing credit facility by $75 million, increasing the total borrowing capacity to $300 million. This expansion, led by Texas Capital Bank, aims to support NGS's growth strategy by funding the expansion of its rental equipment fleet. The credit facility amendment became effective on June 6, 2024. CEO Justin Jacobs expressed gratitude towards the lending partners for their support in achieving this agreement.

Positive

• NGS expanded its credit facility by $75 million.
• Total borrowing capacity increased to $300 million.
• The expansion supports the company's growth strategy.
• The credit facility is backed by Texas Capital Bank.
• Incremental capital will fund rental equipment fleet expansion.

Negative

• Increased borrowing may lead to higher debt levels.
• Dependence on external financing could pose risks.
• Potential interest rate changes may affect future costs.

Midland, Texas, June 10, 2024 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”), a premier provider of natural gas compression equipment to the energy industry, announced today the closing of an expansion of its existing credit facility (the “Facility”) led by Texas Capital Bank. The Company added $75 million of additional borrowing capacity to increase the committed borrowing capacity to $300 million. The Facility provides the Company with additional capital to fund further growth in NGS’s rental equipment fleet. 

“We are pleased to announce the successful expansion of our Facility from $225 million to $300 million,” said Justin Jacobs, Chief Executive Officer of NGS.  “I want to thank all of our lending partners for their continued support and hard work to allow us to reach this agreement to increase our borrowing capacity. The incremental capital availability will help to continue to execute on our stated growth strategy.”

The amendment was effective as of June 6, 2024.

FAQ

What is the recent development announced by Natural Gas Services Group (NGS) on June 10, 2024?

NGS announced the expansion of its existing credit facility by $75 million, increasing the total borrowing capacity to $300 million.

What is the purpose of Natural Gas Services Group's expanded credit facility?

The expanded credit facility will provide additional capital to fund the growth of NGS's rental equipment fleet.

When did the new credit facility terms become effective for NGS?

The new credit facility terms became effective on June 6, 2024.

Which bank led the expansion of NGS's credit facility?

Texas Capital Bank led the expansion of NGS's credit facility.

How much did NGS's credit facility increase by in June 2024?

NGS's credit facility increased by $75 million.