Flotek Industries, Inc. Enters $75M Credit Agreement, Refinances Debt

What Happened
Flotek Industries, Inc. announced on September 23, 2026 that it entered into a Credit Agreement providing $75.0 million of initial term loans, used to repay and terminate the prior PWRTEK Note. The facility also includes delayed-draw capacity, is secured by substantially all assets of the company and its domestic subsidiaries, and matures on September 23, 2031. The company also entered an Intercreditor Agreement with Amerisource and extended its existing ABL Agreement with Amerisource to October 31, 2027. A press release was furnished under Regulation FD.

Key Details

• Initial Term Loans: $75.0 million funded on the Closing Date; net proceeds used to repay the PWRTEK Note (previously $40M) and for general corporate purposes. The PWRTEK Note was repaid in full and terminated; its liens were released.
• Delayed-draw capacity: $15.0M initial delayed draw (one-time request through June 30, 2027) plus up to $30.0M additional delayed-draw commitments (by lender approval) available through March 31, 2028. Delayed draws require Consolidated Leverage Ratio ≤ 2.00:1.00 after borrowing.
• Interest & payments: Interest = Term SOFR (floor 2.50%) + 6.50% margin (implies a minimum rate of 9.00% p.a.); amortization begins after two years with 0.25% quarterly installments and remaining balance due at maturity (9/23/2031).
• Prepayments & MOIC: Mandatory prepayments from certain proceeds and 50% of excess cash flow (after the restricted period) apply; a MOIC payment (factor 1.30x, blended if delayed draws used) is due on full repayment/maturity/acceleration until lenders receive the MOIC cap.
• Security, guarantees & intercreditor: Loans are secured by substantially all assets; an Intercreditor Agreement gives Amerisource first priority on ABL-priority collateral while the Collateral Agent holds first priority on non-ABL collateral. Domestic wholly-owned subsidiaries guarantee the loans.
• Related-party note: PC Energy Credit I LLC performed a $12.5M cashless roll of PWRTEK obligations into the Initial Term Loans; PC Energy is related to ProFrac principals and the transaction was approved by the Audit Committee.

Why It Matters
This filing shows Flotek has restructured and extended its term debt, replacing the higher-cost PWRTEK Note and creating multi-year secured financing that increases available liquidity through delayed draws and extends ABL availability to late 2027. Investors should note the material credit terms: a substantial secured pledge of assets, a leverage covenant (max 3.00:1.00 quarterly; ≤2.00:1.00 required for additional draws), a minimum effective interest rate around 9% (SOFR floor + margin), and MOIC-related payoff mechanics that can increase total cash required on repayment. These are key items for evaluating near-term interest expense, covenant risk, and potential restrictions on corporate actions.