Ranger provides high specification well servicing rigs and ancillary equipment to the oil and gas industry.
“We are pleased with the purchase price of the Basic assets, and we look forward to welcoming a number of Basic personnel into the Ranger family,” Stuart Bodden, Ranger president and chief executive officer, said in a statement. “In addition to assets, this transaction gives Ranger access to many talented field personnel and managers that worked at Basic.“I would also like to thank the Ranger team for their tireless work over the last two weeks to lay the groundwork for what I know will be a successful integration as we continue to build value for our stockholders,” Bodden said.
In connection with the acquisition, Ranger’s controlled subsidiary RNGR Energy Services entered into a credit facility on Sept. 27 with Eclipse Business Capital as the sole administrator and collateral agent and Eclipse Business Capital SPV as the sole lender, for a new $77.5 million credit facility consisting of a $50 million revolving credit facility, a $12.5 million machinery and equipment term loan facility and a $15 million term loan B facility.
Concurrent with the close of the acquisition, Ranger also closed its previously announced private placement of $42 million of shares of its newly issued Series A Convertible Preferred Stock to certain accredited investors.
The company also redeemed outstanding units of Ranger and of corresponding shares of Class B Common Stock of the company held by affiliates of CSL Capital Management and Bayou Well Holdings Co. for an equivalent number of shares of Class A Common Stock.
Fort Worth, Texas-based Basic Energy and 12 affiliates on Aug. 17 filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas in Houston seeking a sale of their assets.
Shares of Ranger on Friday closed down 4.7% to $8.77.
Read More: Ranger Energy Acquires Bankrupt Basic Energy Assets