HOUSTON, October 01, 2021– (BUSINESS WIRE) – Ranger Energy Services, Inc. (NYSE: RNGR) has completed the previously announced acquisition of certain assets of Basic Energy Services, Inc. and its subsidiaries through its controlled subsidiary, Ranger Energy Acquisition, LLC. The assets were sold by Basic as part of bankruptcy proceedings. The agreement to purchase the assets was approved by the U.S. bankruptcy court on September 23, 2021. The purchase price of approximately $ 36.65 million was paid with the proceeds from the private placement described below.
Stuart Bodden, President and Chief Executive Officer of Ranger, said, “We are pleased with the purchase price of the Basic assets and we are pleased to welcome a number of Basic employees to the Ranger family. Access to many talented field salespeople and managers, who worked at Basic. I would also like to thank the Ranger team for their tireless work over the past two weeks in laying the groundwork for what I believe to be a successful integration as we continue to create value for our shareholders. “
As previously announced, the Company-controlled subsidiary RNGR Energy Services, LLC has a credit facility on September 27, 2021 with Eclipse Business Capital LLC as the sole administrator and collateral agent and Eclipse Business Capital SPV, LLC as the sole lender for a new credit facility of $ 77.5 million comprised of a $ 50 million revolving credit facility
Simultaneously with the completion of the acquisition, the company also completed its previously announced private placement of $ 42 million in shares of its newly issued Series A convertible preferred stock to certain accredited investors.
In addition, at the same time as the acquisition was completed, Ranger LLC and the Company completed the previously announced redemption of the outstanding shares of Ranger LLC and the corresponding shares of the Company’s Class B common stock held by affiliates of CSL Capital Management, LP and Bayou Well Holdings Company, LLC for an equivalent number of Class A common shares of the company. No Class B common shares of the Company will be issued and outstanding after redemptions.
The company will host a conference call on October 4 at 10:30 am Central Time (11:30 am Eastern Time) to discuss the acquisition. To join the conference call from the United States, attendees can dial 1-833-255-2829. To participate in the conference call outside of the United States, attendees can dial 1-412-902-6710. If prompted to answer the call from Ranger Energy Services, Inc., ask the operator. It is recommended that attendees log in to the webcast or dial into the conference call about ten minutes in advance. The company will provide a presentation prior to the start of the conference call. To view the presentation or to listen to it via a live webcast, please visit the Investor Center section of the company’s website. http://www.rangerenergy.com.
An audio replay of the conference call will be available shortly after the call ends and will remain available for approximately seven days. It can be reached at 1-877-344-7529 within the United States or 1-412-317-0088 outside the United States. The access code to record the conference call is 10160762. The recording will also be available in the Investor Center area of the company’s website shortly after the call is completed and will remain available for approximately seven days.
Piper Sandler is serving as the exclusive financial advisor to the Company in relation to the acquisition of Basic assets and as the sole placement agent in relation to the debt financing and private placement of preferred shares. Winston & Strawn LLP is acting as legal advisor to the company.
About Ranger Energy Services, Inc.
Ranger is an independent provider of well servicing equipment and related services in the United States with an emphasis on unconventional horizontal well completion and production operations. Ranger also provides services necessary to bring a well into production and maintain it. The Processing Solutions segment deals with the rental, installation, commissioning, commissioning, operation and maintenance of MRUs, liquefied gas stabilizers and storage facilities as well as associated equipment.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect Ranger’s expectations or beliefs about future events. and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are beyond Ranger’s control, and which could cause actual results to differ materially from those discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made and Ranger undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future information, except as required by law, events or otherwise. From time to time new factors will emerge and Ranger will not be able to predict all of these factors. In considering these forward-looking statements, you should consider the risk factors and other cautionary statements in our filings with the Securities and Exchange Commission. The risk factors and other factors mentioned in Rangers’ filings with the SEC could cause actual results to differ materially from those in forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211001005742/de/
J. Brandon Blossman