Simpson Thacher represented J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and Goldman Sachs & Co. LLC in connection with the debut Rule 144A/Regulation S offering by Nine Energy Service, Inc. (“Nine”) of $400 million aggregate principal amount of 8.75% Senior Notes due 2023. The Firm also represented the lead arrangers, led by JP Morgan Chase Bank, N.A., in connection with Nine’s new $200 million asset-based revolving credit facility.
Nine used the net proceeds of the notes offering and borrowings under the new ABL facility to repay indebtedness outstanding under its existing term loan facility, to fund the upfront cash purchase price for the acquisition of Magnum Oil Tools International, LTD and its subsidiaries (“Magnum”) and to pay related fees and expenses.
Nine is an oilfield services company that offers completion and production solutions throughout North America. Nine brings years of experience with a deep commitment to serving clients with smarter, customized solutions and world-class resources that drive efficiencies. Strategically located throughout the U.S. and Canada, Nine continues to differentiate itself through superior service quality, wellsite execution and cutting-edge technology. Nine is headquartered in Houston, Texas with operating facilities in the Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus, Utica and throughout Canada.
Magnum is a leading downhole technology provider serving the global oil and gas industry for over a decade. Magnum has a broad offering of proprietary downhole completions products including dissolvable and composite frac plugs and a number of other patented consumables. Magnum is headquartered in Corpus Christi, Texas with operating facilities in the Permian, SCOOP/STACK, Bakken, Niobrara, Haynesville, Marcellus, Utica and Canada.
The Simpson Thacher team included David Azarkh, Brian E. Rosenzweig, Niyati Roy, Kal Venkatraj and Philip Wiseman (Capital Markets—New York and Houston); Robert Rabalais, Brandan Still, Deborah El-Schaeddhaei and Brandon Barton (Credit—Houston); Jon Cantor and Brian Mendick (Tax); Marissa Lambert (IP); Lauren Roth (ECEB); Jennie Getsin (Blue Sky); and Tim Mulvihill (Environmental).