KLX Energy Services Reveals Initial Outcomes of Its Subscription Rights Offering

KLX Energy Services Holdings, Inc. (NASDAQ: KLXE) recently unveiled the preliminary results from its subscription rights offering, which reached its expiration on September 23, 2026, at 5:00 PM New York City time. This offering allowed current shareholders a chance to purchase additional shares of common stock.

According to the company’s Subscription Agent, Computershare Trust Company, N.A., by the expiration date, shareholders exercised a total of 6,385,123 basic subscription rights. This resulted in the acquisition of 24,806,099 shares of the Company’s common stock, complemented by 168,902 additional shares purchased under the over-subscription privilege. Altogether, KLX anticipates issuing approximately 24,975,001 shares at a subscription price of $1.49 per share. Consequently, the total gross proceeds of the offering are estimated to be around $37.2 million.

From the proceeds, KLX plans to allocate $31 million towards general corporate endeavors, such as covering relevant fees and expenses associated with the rights offering. Furthermore, $6.2 million is intended for redeeming the existing 2030 Notes, ensuring a balanced financial strategy by addressing both operational costs and debt reduction.

With the completion of the rights offering, the total quantity of issued and outstanding shares is expected to rise to about 105.7 million. This increase reflects the company’s proactive measures to improve its capital structure and financial health. Following the rights offering execution and the anticipated backstop exchange—which involves converting a portion of existing 2030 Notes into additional stock—the outstanding principal amount of the 2030 Notes is expected to decrease by $94 million.

The offering was backed by existing holders of KLX's Senior Secured Floating Rate Cash / PIK Notes due in 2030, ensuring a solid foundation for the capital increase. The backstop commitment initially set at $94 million has been reduced to $87.8 million after redeeming $6.2 million in 2030 Notes through the proceeds of the rights offering. Each participating backstop party pledged to acquire shares in exchange for their respective 2030 Notes, maintaining a 30% ownership boundary on a pro forma fully diluted basis.

An estimated 59.3 million shares of common stock will be distributed to the backstop parties as part of this exchange. Upon completing these transactions, KLX is set to implement an amended and restated indenture governing the terms of the 2030 Notes.

This rights offering took place under KLX's existing effective shelf registration statement filed with the Securities and Exchange Commission (SEC), supplemented by a prospectus that detailed the terms and conditions of the offering. While this announcement shares significant information regarding KLX’s financial strategies and outcomes, it does not constitute an invitation to purchase stock or an offer to buy any securities.

About KLX Energy Services Holdings, Inc.

KLX Energy Services is recognized for its growth-focused approach in providing a wide range of oilfield services to key players in the oil and gas sector in the United States. The company’s services span drilling, completion, production, and a host of other integral operations necessary for successful oil exploration. With over 60 operational facilities across the United States, KLX is well-equipped to handle technically challenging wells, enhancing its ability to serve its clients effectively. More detailed information regarding KLX’s offerings can be found on their official website, www.klx.com.

As KLX Energy Services progresses in its financial strategies and aims to enhance shareholder value, this offering marks a significant milestone in its ongoing journey. Stakeholders and potential investors keenly await the official distribution of shares anticipated around September 29, 2026, marking the next chapter in KLX’s promising trajectory.