THE WOODLANDS, Texas, April 20, 2006 (PRIMEZONE) -- TETRA Technologies, Inc. (TETRA or the Company) (NYSE:TTI) today announced that it has placed $90 million through a private, unregistered debt offering. The Series 2006-A Notes were issued pursuant to the Company's existing Master Note Purchase Agreement dated September 27, 2004. The Notes mature on April 30, 2016, have a bullet maturity and carry a 5.90% interest rate.
Geoffrey M. Hertel, President and Chief Executive Officer, stated, "These notes give TETRA significant financial flexibility. The combination of an aggressive growth oriented capital expenditure program, recent acquisitions and increasing working capital (particularly associated with Well Abandonment & Decommissioning Services work) used up a substantial portion of our existing $200 million bank line. The Note proceeds will initially be used to pay down our bank line of credit. Immediately following the bank line repayment we will have long term debt of approximately: $33 million in 2004 Euro Notes; $55 million in 2004 U.S. Dollar Notes; $90 million in 2006-A Notes; and, $67 million under the bank line. This leaves $115 million of available credit under our bank line (after a reduction of $18 million for letters of credit).
"Each of the three series of Notes have bullet maturities. The 2004 Notes mature on September 30, 2011, while the 2006-A Notes mature on April 30, 2016. Interest rates are fixed on all three series: 2004 Euro Notes -- 4.79%; 2004 U.S. Dollar notes -- 5.07%; and, 2006-A Notes -- 5.90%. We believe this weighted average fixed interest rate of approximately 5.44% on the $178 million of Notes gives us great financial flexibility at a very attractive average rate," concluded Hertel.
The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws. Unless so registered, the Notes may not be offered, sold, transferred or otherwise disposed of in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release is issued pursuant to Rule 135c under the Securities Act and will not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall there be any sale of the securities in any state in which any offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such state.
TETRA is an oil and gas services company, including an integrated calcium chloride and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets.
The logo for TETRA Technologies, Inc. is available at http://www.primezone.com/newsroom/prs/?pkgid=2495
This press release includes certain statements that are deemed to be forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Certain Business Risks" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.