Extends debt timeline to strengthen liquidity, enhance financial flexibility, and support long-term growth initiatives.
Forum Energy Technologies has announced an amendment to its senior secured asset-based lending credit facility, a move the company says will enhance financial flexibility and support its long-term strategic plans. The amendment was arranged by a syndicate of major financial institutions, with Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A., and Bank of America, N.A. serving as joint lead arrangers and joint book runners. Wells Fargo will continue in its role as administrative agent for the facility.
According to the company, the revised credit facility provides total commitments of $250 million, offering additional liquidity to support a range of strategic priorities. These include the retirement of long-term debt, continued organic investment across its core businesses, and the potential pursuit of acquisition opportunities. FET leadership said the enhanced facility is aligned with its long-term corporate roadmap, known internally as “FET 2030,” which focuses on strengthening the company’s financial position while driving growth across key markets.
Lyle Williams, Executive Vice President and Chief Financial Officer, emphasized the importance of the amendment, noting that it reinforces the company’s balance sheet and reflects continued support from its banking partners. He said the facility’s size and improved terms will provide meaningful flexibility as the company advances strategic initiatives and positions itself for sustained growth.
The amendment introduces several significant changes to the credit facility. Most notably, the maturity date has been extended to February 2031, subject to certain customary exceptions. This extension lengthens FET’s debt horizon, reducing near-term refinancing pressures and providing greater stability for long-range planning. In addition, the facility increases the total amount of letters of credit that may be issued to $110 million, enhancing the company’s ability to support operational and commercial activities that require credit backing.
Another key component of the amendment is a revised interest-rate structure. Borrowings under the facility will now be priced based on an excess availability-based framework, which is designed to offer improved pricing as liquidity levels increase. This structure is intended to reward stronger balance-sheet positions with more favorable borrowing costs, further supporting FET’s financial strategy.
The company noted that the full details of the amended credit facility will be disclosed in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.
Forum Energy Technologies is a global manufacturing company that provides products and services to the oil, natural gas, defense, and renewable energy sectors. Headquartered in Houston, Texas, the company focuses on delivering value-added solutions aimed at improving safety, operational efficiency, and environmental performance for its customers around the world. With the amended credit facility in place, FET aims to maintain financial strength while pursuing growth opportunities across its diverse end markets.
