{"id":507325,"date":"2021-06-28T16:33:25","date_gmt":"2021-06-28T20:33:25","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/u-s-well-services-issues-125-5-million-convertible-senior-secured-pik-notes-executes-license-agreement-with-profrac-manufacturing-llc-and-finalizes-amendment-to-senior-secured-term-loan\/"},"modified":"2021-06-28T16:33:25","modified_gmt":"2021-06-28T20:33:25","slug":"u-s-well-services-issues-125-5-million-convertible-senior-secured-pik-notes-executes-license-agreement-with-profrac-manufacturing-llc-and-finalizes-amendment-to-senior-secured-term-loan","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/u-s-well-services-issues-125-5-million-convertible-senior-secured-pik-notes-executes-license-agreement-with-profrac-manufacturing-llc-and-finalizes-amendment-to-senior-secured-term-loan\/","title":{"rendered":"U.S. Well Services Issues $125.5 Million Convertible Senior Secured PIK Notes, Executes License Agreement with ProFrac Manufacturing, LLC and Finalizes Amendment to Senior Secured Term Loan"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n HOUSTON<\/span>, June 28, 2021<\/span> \/PRNewswire\/ —\u00a0U.S. Well Services, Inc. (the “Company”, “U.S. Well Services” or “we”) (NASDAQ: USWS) today announced it has entered into a series of strategic transactions that position the Company to execute on its previously announced strategic plan to grow and become a fully-electric hydraulic fracturing services provider.\u00a0 U.S. Well Services issued $125.5 million<\/span> of 16.0% Convertible Senior Secured (Third Lien) PIK Notes due June 2026<\/span> (the “Notes”) in a private placement to institutional investors (the “Private Placement”).\u00a0 In connection with the Private Placement, the Company sold $64.0 million<\/span> of Notes convertible into U.S. Well Services Class A Common Stock (the “Cash Notes”) and $22.5 million<\/span> of Notes convertible into licenses to ProFrac Manufacturing, LLC\u00a0 (“ProFrac”) to build three hydraulic fracturing fleets using the Company’s Clean Fleet\u00ae technology (the “License Notes”).\u00a0 U.S. Well Services has also taken substantial steps towards simplifying the Company’s capital structure.\u00a0 The Company exchanged $39.0 million<\/span> of its Series A Redeemable Convertible Preferred Stock for $39.0 million<\/span> of newly issued Notes convertible into U.S. Well Services Class A Common Stock (the “Exchange Notes”).\u00a0 Additionally, the Company expects to amend the Certificate of Designations for its Series B Redeemable Convertible Preferred Stock (the “Series B”), which would allow U.S. Well Services to convert all outstanding shares of the Series B.\u00a0 Following entry of the final judgment by the Superior Court of Delaware<\/span> in the Smart Sand v. U.S. Well Services LLC <\/i>litigation awarding Smart Sand approximately $52 million<\/span>, the Company agreed to settle the case for $35.0 million<\/span> in cash and the entry into an agreement to provide Smart Sand certain rights of first refusal related to the supply of frac sand (the “Settlement”).\u00a0 Proceeds from the Private Placement will be used to fund the cash portion of the Settlement and to fund capital expenditures related to four Nyx Clean Fleets\u00ae\u00a0and place deposits on critical items for two additional Nyx Clean Fleets\u00ae, as well as for general corporate purposes.\u00a0 These capital expenditures are expected to enable the Company to grow its asset portfolio up to 11 all-electric fleets representing approximately 593,500 hydraulic horsepower.<\/p>\n

\n Key Transaction Highlights:<\/b>\n <\/p>\n