UPDATE 1-Basic Energy says expects to breach certain covenants
* To offer $225 mln senior notes due 2017
* Some proceeds from offering to pay down debt
* Reaffirms Q2 revenue view
July 6 (Reuters) - Basic Energy Services (BAS.N) said it expects to violate certain covenants under its credit facility in the future and will offer $225 million senior notes, the proceeds from which will be partially used to pay down debt. Basic Energy also reiterated its second-quarter revenue forecast of a sequential decrease of 23 percent to 25 percent. [ID:nBNG463594]
Proceeds from offering will be used to pay about $180 million under a revolving credit facility, and the remainder will be used for general corporate purposes, the oilfield services provider said.
As of June 30, the company had $180 million outstanding under the credit facility, with $28.8 million available for borrowing. It had about $134 million in cash.
The company expects its operating cash flows along with cash and cash equivalents will sufficiently fund its liquidity requirements in the near future.
Shares of the company closed at $6.35 Thursday on the New York Stock Exchange.
For the alerts, double-click [ID:nWNAB4492][ID:nWNAB4489] (Reporting by Shradhha Sharma in Bangalore; Editing by Anne Pallivathuckal)
