Key Energy plans to draw on credit facility to fund acquisition

By Melissa Kory

Cleveland, July 14 - Key Energy Services, Inc. announced that it intends to fund the cash portion of its $300 million acquisition of Edge Oilfield Services, LLC and Summit Oilfield Services, LLC with borrowings under its credit facility as well as available cash.

The consideration consists of about 7.5 million shares of Key common stock and $164 million in cash, which is subject to working capital and other adjustments at closing.

The closing of the acquisition, which is expected to occur this quarter, is subject to customary conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

Key Energy is a Houston-based onshore rig-based well servicing contractor.

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