Flotek Industries Secures $120 Million Senior Secured Term Loan Facility

Flotek Industries, Inc. (NYSE: FTK) entered into a Senior Secured Term Loan Credit Agreement on September 23, 2026, with Alter Domus (US) LLC acting as administrative and collateral agent. The facility provides the Houston-based company with up to $120 million in aggregate principal amount, comprising an initial term loan and delayed draw term loans.

On the Closing Date, the company received initial term loans in the aggregate principal amount of $75.0 million. The net proceeds from these initial loans are designated to refinance the Company’s existing indebtedness under the PWRTEK Note and to fund capital expenditures, working capital, and general corporate purposes.

The Credit Agreement includes a commitment for $15.0 million in initial delayed draw term loans, which may be requested once after the Closing Date and on or before June 30, 2027. Additionally, the company may request delayed draw term loans of up to $30.0 million during the period from the Closing Date until March 31, 2028, subject to approval by the Required Lenders. Funding for these delayed draw amounts is contingent upon the Consolidated Leverage Ratio not exceeding 2.00:1.00.

The maturity date for the loans is September 23, 2031. Interest accrues at a rate per annum equal to Term SOFR, subject to a floor of 2.50%, plus an applicable margin of 6.50%. The loan requires mandatory prepayments based on net cash proceeds from indebtedness, asset sales exceeding $5.0 million, and excess cash flow, as well as voluntary prepayments without premium or penalty after the Restricted Period End Date.

The obligations under the Credit Agreement are secured by security interests in substantially all of the property and assets of the Borrower and its Subsidiary Guarantors. The security structure includes a split-collateral arrangement with Amerisource Funding, Inc., which holds a first priority lien on certain assets under the Company’s existing asset-based loan agreement. The Company’s existing asset-based loan agreement has been extended from October 31, 2026, to October 31, 2027.

One of the lenders, PC Energy Credit I LLC, exchanged $12.5 million of obligations under the PWRTEK Note for the Initial Term Loans. PC Energy is an affiliate of ProFrac Holding Corp. founders Dan Wilks and Farris Wilks. The transaction was approved by the Audit Committee of the Board of Directors pursuant to its Related-Party Transactions Policy.