Loan & DebtMay 4, 2026, 07:37 AM
ProPetro to Offer $500M Convertible Senior Notes Due 2031
AI Summary
ProPetro Holding Corp. announced its intention to offer $500 million in Convertible Senior Notes due 2031 in a private placement, with an option for initial purchasers to buy an additional $75 million. A portion of the net proceeds will fund capped call transactions to reduce potential dilution, and the remainder will be used for general corporate purposes, including growth capital for additional power generation equipment. Concurrently, the company amended its ABL Credit Facility, extending its maturity to May 2031 and increasing revolving credit commitments to $350 million, alongside adding a new $690 million basket for convertible indebtedness. As of May 1, 2026, ProPetro had $154 million in cash and cash equivalents.
Key Highlights
- ProPetro to offer $500 million Convertible Senior Notes due 2031 in private placement.
- Initial purchasers have option to buy additional $75 million aggregate principal amount of notes.
- Proceeds to fund capped call transactions and growth capital for power generation equipment.
- ABL Credit Facility commitments increased to $350 million, with a $150 million uncommitted accordion.
- ABL Credit Facility maturity date extended to May 2031.
- New $690 million basket for convertible indebtedness added to ABL Credit Facility.
- Cash and cash equivalents totaled $154 million as of May 1, 2026.
- ABL borrowing base was approximately $150.8 million as of May 1, 2026.