CARBO Ceramics Inc. announced that it has entered into an amended credit agreement with the Wilks Brothers, LLC and a promissory note with its affiliate, Equify Financial LLC. The total amount of borrowings under this new structure remains the same at $65 million, however, the debt is now split between the Wilks and Equify, $33 million and $32 million, respectively.  The interest rate of 9%, maturity on December 31, 2022, and the terms and conditions for both loans remain the same as the previous credit agreement.

By amending the previous credit agreement, the Company is able to retain the net cash proceeds from the sale of its Millen, Georgia facility that otherwise would have been required to pay down the credit facility principle if not reinvested within 270 days from the completion of the sale.

Additional amendments of the ancillary documents include: an extension of the interest whole payment through March 31, 2021, one appointment to the CARBO Board of Directors by the Wilks (and one additional appointment if certain ownership requirements are met), an increase in the Wilks equity ownership cap from 15% to 29.5%, a revision of the warrant strike price to $4 per share and extension of the warrant maturity.

Gary Kolstad, Chairman and CEO of CARBO commented, "Our relationship with the Wilks has remained constructive during this downturn and has provided us financial flexibility as we transform the company.  We are pleased with the outcome of our negotiations with the Wilks to complete this amendment that strengthens our balance sheet and provides liquidity to pursue opportunities that should accelerate our transformation strategy.  Currently, we have two focus areas of activity.  The first is ongoing negotiations with industrial and agricultural companies to produce products with our existing plant assets, and this may involve either a contract manufacturing agreement or an acquisition.  The second is ongoing negotiations with software and environmental companies to leverage and grow our existing market leading positions, and this may involve either joint marketing agreements, or potentially an investment or acquisition.  We expect the successful outcome of any of these negotiations will lead to incremental cashflow and EBITDA."

Morgan D. Neff, Chief Investment Officer for Wilks Brothers Investments commented, "We are very pleased to have completed this transaction with CARBO and Equify Financial as we continue to extend our multi-year relationship with CARBO. This transaction allows our organization to designate members to sit on the CARBO board and it raises the previously implemented equity ownership cap granting us the ability to further grow our investment in CARBO."