Oil States International Secures Fresh $125 Million Credit Facility

Oil States US6780261052

Oil States International has successfully negotiated a comprehensive overhaul of its financial framework, obtaining a new $125 million credit agreement. This strategic move is designed to enhance the company's operational flexibility, enabling it to meet upcoming obligations and support core business activities. A key question now is whether this newly established financial runway will be sufficient to retire the remaining convertible debt due in 2026 without straining the balance sheet.

The company finalized terms for this new facility last Wednesday. It marks a significant departure from its previous asset-based lending structure to a model grounded in cash flow, which typically offers greater managerial freedom. The agreement is secured by substantially all U.S. assets and equity interests in certain foreign subsidiaries.

• Total Commitment: $125 million.
• Facility Structure: Comprised of a $75 million revolving credit line and a $50 million term loan.
• Maturity Date: The agreement is set to expire on January 28, 2030.
• Pricing: Interest rates will be based on the Term SOFR benchmark, plus applicable margins that vary according to the company's leverage ratio.

This refinancing is part of a broader balance sheet optimization strategy. In the fourth quarter of 2025, Oil States initiated a debt reduction effort by repurchasing $50 million in principal amount of its convertible notes. These securities, which carried a 4.75% interest rate, were originally scheduled to mature in April 2026.

Addressing the 2026 Convertible Notes

Despite these repurchases, approximately $53 million in principal from this note series remains outstanding. As of January 28, the company reported a cash position of $70 million. Management has multiple pathways available for the final refinancing, as none of the new credit facility has been drawn upon yet.

The clear objective is the complete retirement of the 2026 liabilities. This can be achieved either through the use of existing cash reserves or by a strategic drawdown from the new revolving credit line. This approach positions the company to manage its near-term debt obligations smoothly.

Awaiting Fourth Quarter 2025 Results

The market will soon gain clearer insight into the underlying performance of the business. Oil States International is scheduled to release its financial results for the fourth quarter and full year 2025 between February 18 and 20, 2026. These figures will provide critical context for assessing the impact of the new capital structure on the company's financial metrics and future liquidity planning.