KLX Energy Services Closes Subscription Offering and Debt Exchange

The offering saw the issuance of 24,975,001 shares of common stock at a price of $1.49 per share. KLX plans to allocate $31 million of the proceeds toward general corporate expenses, while $6.2 million is earmarked to redeem a portion of its 2030 notes at par, along with accrued interest. Following these transactions, the company’s total outstanding common stock is expected to reach 105,677,168 shares.

Simultaneously, the firm executed a Backstop Exchange involving existing noteholders. By swapping debt for equity, the company successfully reduced the outstanding principal of its 2030 notes by $94 million. To facilitate this, KLX entered into an amended indenture governing the remaining notes, with the backstop parties now holding a stake in the company subject to a 30% ownership cap. Participants in the offering will receive their shares in uncertificated book-entry form, with the subscription agent managing any remaining excess payments.