S&C Advises Key Energy Services in Out-of-Court Restructuring

March 26, 2020

S&C advised Key Energy Services in an out-of-court restructuring that closed March 6. As part of the restructuring, Key's existing lenders exchanged $241.9 million of term loans for $20 million of new term loans and shares of common stock representing 97% of Key's outstanding shares after completion of the restructuring. In connection with the restructuring, Key entered into an amended asset-based loan facility and an amended and restated term loan, with term lenders providing $30 million in new funding. In addition, Key distributed warrants to pre-restructuring common stockholders covering, in the aggregate, up to 17.5% of the company's common stock. 
 
Key is the largest onshore, rig-based well-servicing contractor based on the number of rigs owned. Key provides a complete range of well-intervention services and has operations in all major onshore oil and gas producing regions of the continental United States.

The S&C team advising Key was led by Alison Ressler and Patrick Brown on corporate matters. James Bromley and Ari Blaut led the team on restructuring matters. David Spitzer advised on tax matters.