TETRA Technologies Reports Material Agreement Changes & New Debt

TL;DR

**TETRA Technologies just shook up its debt and contracts, watch for financial ripple effects.**

AI Summary

TETRA Technologies, Inc. filed an 8-K on January 18, 2024, reporting events from January 12, 2024, concerning the entry into and termination of a material definitive agreement, and the creation of a direct financial obligation. This indicates significant changes in the company's financial commitments and contractual relationships. For investors, this matters because such changes can impact the company's future cash flow, debt levels, and overall financial stability, potentially affecting stock valuation.

Why It Matters

This filing signals a shift in TETRA Technologies' financial structure and contractual obligations, which could influence its operational flexibility and profitability. Investors should monitor the details of these agreements to assess potential impacts on the company's financial health.

Risk Assessment

Risk Level: medium — The filing indicates significant changes to material agreements and financial obligations, which inherently carry a medium risk due to potential unknown impacts on the company's financial health.

Analyst Insight

A smart investor would seek out the specific details of the 'Material Definitive Agreement' and 'Direct Financial Obligation' mentioned in this 8-K to understand their financial implications for TETRA Technologies, Inc. before making any investment decisions.

Key Players & Entities

• TETRA Technologies, Inc. (company) — the registrant filing the 8-K
• January 12, 2024 (date) — date of earliest event reported
• January 18, 2024 (date) — date the 8-K was filed
• Delaware (company) — state of incorporation for TETRA Technologies, Inc.

FAQ

Key Financial Figures

• $190 million — e of closing in the principal amount of $190 million (the "Initial Term Loan") and the avail
• $75 million — up to an aggregate principal amount of $75 million (the "Delayed Draw Term Loans," and tog

Filing Documents

• tti-20240112.htm (8-K) — 45KB
• exhibit101.htm (EX-10.1) — 1239KB
• exhibit102.htm (EX-10.2) — 76KB
• exhibit991.htm (EX-99.1) — 14KB
• image_0.jpg (GRAPHIC) — 21KB
• 0000844965-24-000010.txt ( ) — 1778KB
• tti-20240112.xsd (EX-101.SCH) — 2KB
• tti-20240112_def.xml (EX-101.DEF) — 6KB
• tti-20240112_lab.xml (EX-101.LAB) — 29KB
• tti-20240112_pre.xml (EX-101.PRE) — 17KB
• tti-20240112_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. New Term Loan Credit Agreement On January 12, 2024, the Company, as borrower, entered into that certain Credit Agreement (the "Term Loan Credit Agreement") with Silver Point Finance, LLC, as administrative agent, and the lenders party thereto (collectively, the "Term Lenders"). The Term Loan Credit Agreement provides an initial term loan on the date of closing in the principal amount of $190 million (the "Initial Term Loan") and the availability of delayed draw term loans, subject to the terms of the Term Loan Credit Agreement, up to an aggregate principal amount of $75 million (the "Delayed Draw Term Loans," and together with the Initial Term Loan, the "Term Loan"). Proceeds from the Initial Term Loan are being used to repay in full indebtedness of the Company under its existing term loan credit agreement and for general corporate purposes. Proceeds of any Delayed Draw Term Loans may be used for the construction of a bromine processing facility. The loans under the Term Loan Credit Agreement may be voluntarily prepaid, in whole or in part, subject to applicable prepayment premiums. Any prepayment of the Term Loan prior to the one-year anniversary of the closing date will have a premium of 3.0%, any prepayment of the Term Loan during the period commencing on the one-year anniversary of the closing date and ending immediately prior to the two-year anniversary of the closing date will have a premium of 2.0% and any prepayment of the Term Loan during the period commencing after the two-year anniversary of the closing date and ending immediately prior to the three-year anniversary of the closing date will have a premium of 1.0%. There is no prepayment premium required on or after the third anniversary of the closing date. The maturity date of the Term Loans is January 12, 2030. Borrowings under the Term Loan Credit Agreement will bear interest at a rate per annum equal to, at the option of the Company, either (

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. On January 12, 2024, in connection with the closing of the above-described loans, the Company repaid all outstanding borrowings and obligations under the Credit Agreement dated as of September 10, 2018 among the Company, the lenders from time to time party thereto, and Wilmington Trust, National Association, as administrative agent (the "Existing Credit Agreement") with a portion of the net proceeds from the above-described loans, and terminated the Existing Credit Agreement. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The disclosure set forth above in Item 1.01 is incorporated herein by reference.

01 Other Matters

Item 8.01 Other Matters. On January 15, 2024, the Company issued a press release announcing the entry into the Term Loan Credit Agreement and the Fifth Amendment. A copy of the press release is attached as Exhibit 99.1 and incorporated herein by reference.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 10.1* Credit Agreement dated as of January 12, 2024 among TETRA Technologies, Inc., Silver Point Finance, LLC, as administrative agent, and the lenders party thereto 10.2 Fifth Amendment to Credit Agreement dated as of January 12, 2024 by and among TETRA Technologies, Inc., TETRA Technologies U.K. Limited, the other loan parties party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent 99.1 Press Release dated January 1 5 , 2024 104 Cover Page Interactive Data File * Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K, and portions of this exhibit have been redacted in compliance with instruction 5 to Item 1.01 of Form 8-K. 3

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. TETRA Technologies, Inc. By: /s/Elijio V. Serrano Elijio V. Serrano Senior Vice President and Chief Financial Officer (Principal Financial Officer) Date: January 18, 2024 4

View Full Filing

View this 8-K filing on SEC EDGAR