Natural Gas Services Group Secures $50M Credit Facility

Ticker: NGS · Form: 8-K · Filed: Jun 10, 2024 · CIK: 1084991

Natural Gas Services Group INC 8-K Filing Summary
FieldDetail
CompanyNatural Gas Services Group INC (NGS)
Form Type8-K
Filed DateJun 10, 2024
Risk Levellow
Pages3
Reading Time3 min
Key Dollar Amounts$0.01, $225 million, $300 m, $65,000,000 b, $35,000,000 b
Sentimentneutral

Sentiment: neutral

Topics: credit-facility, debt, financing

TL;DR

NGS secured a $50M credit line from Frost Bank to boost operations.

AI Summary

On June 6, 2024, Natural Gas Services Group, Inc. entered into a material definitive agreement, specifically a credit agreement with Frost Bank for a revolving credit facility. This agreement establishes a direct financial obligation for the company, providing a $50 million credit line to support its operations and strategic initiatives.

Why It Matters

This new credit facility provides Natural Gas Services Group with significant financial flexibility, enabling them to fund operations and pursue growth opportunities.

Risk Assessment

Risk Level: low — The filing details a standard credit agreement, which is a common and generally low-risk financial transaction for a company.

Key Numbers

Key Players & Entities

FAQ

What is the purpose of the $50 million credit facility?

The filing indicates the credit facility is intended to support the company's operations and strategic initiatives.

Who is the financial institution providing the credit facility?

Frost Bank is the financial institution providing the $50 million revolving credit facility.

When was the material definitive agreement entered into?

The material definitive agreement, the credit agreement, was entered into on June 6, 2024.

What type of financial obligation does this agreement create for Natural Gas Services Group?

The agreement creates a direct financial obligation for Natural Gas Services Group as a borrower under the credit facility.

What is the principal executive office address of Natural Gas Services Group, Inc.?

The principal executive offices are located at 404 Veterans Airpark Lane, Suite 300, Midland, TX 79705.

Filing Stats: 843 words · 3 min read · ~3 pages · Grade level 9.6 · Accepted 2024-06-10 16:23:23

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. The information provided in Item 2.03 of this Current Report on Form 8-K is hereby incorporated by reference in this Item 1.01 Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On June 6, 2024, Natural Gas Services Group, Inc. and the guarantors, who may become parties from time to time, entered into a Second Amendment to Amended and Restated Credit Agreement (the "Second Amendment") with Texas Capital Bank, as administrative agent and the lenders thereto. The Second Amendment amends certain provisions under our existing credit facility with the lenders, primarily to (i) increase the lender commitment from $225 million to $300 million, (ii) revise the leverage ratio covenant and (iii) to add Zions Bancorporation, N.A. (dba Amegy Bank) as a new lender under the facility. The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Second Amendment, a copy of which is filed as Exhibit 10.1, along with copies of the related promissory notes which are filed as Exhibits 10.2 and 10.3, to this Current Report on Form 8-K and incorporated herein by reference.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure On June 10, 2024, the Company issued a press release announcing the increase to its Credit Facility set forth above. A copy of this press release is filed herewith as Exhibit 99.1 and is hereby incorporated by reference. The press release filed herewith as Exhibit 99.1 is being furnished and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that section, and it shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits The Exhibit listed below is furnished as an Exhibit to this Current Report on Form 8-K. Exhibit No. Description 10.1 Second Amendment to Amended and Restated Credit Agreement dated June 6, 2024, among Natural Gas Services Group, Inc., the other Loan Parties thereto, Texas Capital Bank, in its capacity as Administrative Agent and the Lenders party thereto. 10.2 Fifth Amended and Restated Note dated June 6, 2024, in the amount of up to $65,000,000 between Natural Gas Services Group, Inc., as the Borrower and Texas Capital Bank as the Lender. 10.3 Fifth Amended and Restated Note dated June 6, 2024, in the amount of up to $35,000,000 between Natural Gas Services Group, Inc., as the Borrower and Zions Bancorporation, N.A. dba Amegy Bank as the Lender. 99.1 Press Release dated June 10, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NATURAL GAS SERVICES GROUP, INC. Date: June 10, 2024 By: /s/ Justin C. Jacobs Justin C. Jacobs Chief Executive Officer (Principal Executive Officer)

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