OKLAHOMA CITY--(BUSINESS WIRE)--Seventy Seven Energy Inc. (NYSE:SSE) announced today that its wholly owned subsidiary, Seventy Seven Operating LLC (“SSO”), has closed an incremental $100 million junior lien financing under its term loan facility with BlueMeridian Capital LLC, an affiliate of investment funds managed by BlueMountain Capital Management. SSO intends to use the net proceeds from the incremental term loan for general corporate purposes and to pay costs and expenses incurred in connection with the transaction.
"This transaction not only strengthens our liquidity, but also provides us a greater ability to take advantage of opportunities that may arise to enhance shareholder value," Chief Executive Officer Jerry Winchester said. "We remain very well positioned to weather the storm the industry is currently experiencing."
Borrowings under the incremental term loan agreement bear interest at an interest rate equal to 9.00% plus the LIBOR rate. Obligations under the incremental term loan agreement are guaranteed jointly and severally by SSE and all of SSO’s present and future direct and indirect wholly-owned material domestic subsidiaries.
About Seventy Seven Energy Inc.
Headquartered in Oklahoma City, SSE provides a wide range of wellsite services and equipment to U.S. land-based exploration and production customers operating in unconventional resource plays. SSE’s services include drilling, hydraulic fracturing, oilfield rentals and rig relocation and its operations are geographically diversified across many of the most active oil and natural gas plays in the onshore U.S., including the Anadarko and Permian basins and the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica shales. For additional information about SSE, please visit our website at www.77nrg.com, where SSE routinely posts announcements, updates, events, investor information and presentations and recent news releases.