- Natural Gas Services Group (NGS, Financial) announces a $100 million expansion of its credit facility, raising total commitments to $400 million.
- The expansion includes improved terms with a 50-75 basis point interest rate reduction and a more flexible leverage covenant starting mid-2026.
- Enhanced financial flexibility will support NGS's fleet growth, focusing on large horsepower and electric drive rental compression units in the Permian Basin.
Natural Gas Services Group (NGS) has successfully secured a $100 million expansion of its existing credit facility, increasing the total commitments to $400 million. This expansion also includes an additional $100 million accordion feature that will become effective April 18, 2025, offering significant enhancements to the company's financial flexibility.
The updated terms of the credit facility provide a 50-75 basis point reduction in interest rates at comparable leverage levels, which will offer NGS potential savings on borrowing costs. Additionally, the facility introduces a more flexible leverage covenant beginning mid-2026. This enhanced financial structure is designed to support the company's strategic goals, particularly in expanding its fleet of large horsepower and electric drive rental compression units in the Permian Basin.
NGS's commitment to fleet growth comes at a crucial time, as the company navigates market volatility and economic uncertainty. The success in securing improved financing terms reflects strong lender confidence in NGS's business model and future prospects. This additional capital supports the company's objectives of driving organic growth and increasing market share while also enhancing the customer experience.
The commitment to fleet expansion, particularly in the Permian Basin, is strategically aligned with the company's goals to invest in high-value segments such as electric drive compression units, which are vital for natural gas infrastructure. This move not only strengthens NGS's position in the market but also prepares the company for future growth opportunities.
The amendment to the credit facility became effective as of April 18, 2025, with NGS expressing gratitude towards both existing and new lending partners for their trust and support in the company's strategic vision. NGS is headquartered in Midland, Texas, and continues to be a leading provider of natural gas compression equipment, technology, and services to the energy industry.
