FTS International tenders for $300 million of 7 1/8% notes due 2018

By Susanna Moon

Chicago, Oct. 16 - FTS International Services, LLC, a wholly owned subsidiary of FTS International, Inc., began a cash tender offer for the $300,007,000 of outstanding 7 1/8% senior notes due 2018 issued by FTSI Services (formerly Frac Tech Services, LLC) and FTS International Bonds, Inc. (formerly Frac Tech Finance, Inc.) as co-issuer.

The company also is soliciting consents to amend the note terms to eliminate substantially all of the restrictive covenants and events of default.

The total purchase price will be $1,090 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 29, the consent date. The total amount includes a premium of $30.00 per $1,000 of notes.

Those who tender after the consent deadline will receive $1,060 per $1,000 of notes.

The tender offer will end at 11:59 p.m. ET on Nov. 13.

The company also will pay accrued interest up to but excluding the settlement date.

The proposed amendments require written consents from holders of at least a majority of the outstanding notes, excluding any notes owned by FTSI Services, FTSI Bonds or any of their affiliates, according to a company press release.

Holders who tender their notes must consent to the proposed amendments. FTSI is seeking consents to all of the proposed amendments as a single proposal. No separate consent payment or fee will be paid to holders in the consent solicitation.

If the needed consents are received, FTSI Services and FTSI Bonds will execute a supplemental indenture that will become effective upon execution, but it will only become operative when at least a majority of the outstanding notes are purchased.

The tender offer is not conditioned on any minimum amount of notes being tendered or the receipt of the majority consents.

Wells Fargo Securities, LLC (866 309-6316 or collect 704 410-4760) is the dealer manager. Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 470-3800 for all others) is the depositary and information agent.

FTS International is a provider of well completion services for the oil and gas industry with corporate offices in Fort Worth, Texas.

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