The offering saw the issuance of 24,975,001 shares of common stock at a price of $1.49 per share. KLX plans to allocate $31 million of the proceeds toward general corporate expenses, while $6.2 million is earmarked to redeem a portion of its 2030 notes at par, along with accrued interest. Following these transactions, the company’s total outstanding common stock is expected to reach 105,677,168 shares.
KLX Energy Services Closes Subscription Offering and Debt Exchange
Houston-based KLX Energy Services has wrapped up its subscription rights offering, securing $37.2 million in gross proceeds. The move, finalized on September 29, triggers a significant restructuring of the company’s debt load through a coordinated exchange with holders of its 2030 senior secured notes.
Simultaneously, the firm executed a Backstop Exchange involving existing noteholders. By swapping debt for equity, the company successfully reduced the outstanding principal of its 2030 notes by $94 million. To facilitate this, KLX entered into an amended indenture governing the remaining notes, with the backstop parties now holding a stake in the company subject to a 30% ownership cap. Participants in the offering will receive their shares in uncertificated book-entry form, with the subscription agent managing any remaining excess payments.
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