Select Water Solutions, Inc. (NYSE: WTTR) announced a series of financing transactions on October 13, 2026, aimed at funding the acquisition of Pilot Water Solutions LLC and managing existing debt.
The company’s subsidiary, Select Water Holdings LLC, executed a New Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent. This agreement establishes a senior secured revolving credit facility with a maximum capacity of $500.0 million, which includes a $50.0 million letter of credit sublimit. The facility is set to become effective upon the completion of the Pilot Water Acquisition and will mature on the earlier of the fifth anniversary of its effectiveness or ninety-one days prior to the maturity of certain related indebtedness.
Separately, Select Water Holdings announced its intention to offer $800 million in aggregate principal amount of Senior Notes due 2034. These notes will be offered pursuant to Rule 144A and Regulation S to eligible purchasers. The company stated that the net proceeds from this offering, combined with cash on hand and borrowings under the new revolving credit facility, will be used to fund a portion of the cash consideration for the Pilot Water Acquisition, repay outstanding obligations under its term loan and existing revolving credit facilities, and cover related fees and expenses.
The New Credit Agreement includes strict financial covenants. Select Holdings is required to maintain a net total leverage ratio of no more than 4.25 to 1.00, a net senior secured leverage ratio of no more than 2.50 to 1.00, and an interest coverage ratio of at least 2.50 to 1.00, all tested quarterly. Additionally, the company is permitted to pay dividends in an aggregate amount up to $15.0 million per fiscal quarter, provided specific financial conditions are met.
The company also entered into a limited consent with lenders under its existing credit facility to permit the contribution of assets to Select Holdings and the issuance of the new notes. The Pilot Water Acquisition is scheduled to close by March 1, 2027, or a later date mutually agreed upon by the parties.
