Select Water Solutions Launches $800M Senior Notes Offering Due 2034
WTTR has more than doubled off its 52-week low of $9.285.
Summary
Select Water Solutions is offering $900 million of senior notes due 2034, upsized from $800 million, with a 7.625% coupon, maturing November 1, 2034, priced at par for net proceeds of about $882.6 million. The issuer is Select Water Holdings LLC, a subsidiary of Select Water Solutions, Inc., and the notes are guaranteed jointly and severally on a senior unsecured basis by existing subsidiaries that are borrowers or guarantors under the revolving credit facility and future restricted subsidiaries that guarantee certain indebtedness under any credit facility. Interest is payable on May 1 and November 1 each year, with the first interest payment on May 1, 2027, and the offering is expected to close on October 21, 2026, subject to customary closing conditions. Proceeds will repay outstanding obligations under the term loan facility in full and repay any outstanding loans plus accrued and unpaid interest under the existing revolving credit facility, and pay fees, premiums, expenses and costs incurred in connection with the foregoing and related transactions. The offering is not contingent on consummation of the Pilot Water Acquisition, but the issuer must redeem the notes if the acquisition is not completed by March 1, 2027 or later outside date as extended by agreement, or if prior to the outside date it notifies the trustee that the acquisition agreement terminated without closing or it will not pursue consummation; the redemption amount is the principal amount of notes issued less $450 million, at a redemption price of 100% of issue price plus accrued and unpaid interest to, but excluding, the redemption date, and the issuer must notify U.S. Bank Trust Company, National Association, the trustee of the Notes, regarding termination or non-pursuit. Select Water Holdings also executed a $500 million revolving credit facility with a $50 million letter of credit sublimit, effective upon the Pilot Water acquisition closing, and provided pro forma financials showing $874.9 million total debt as of June 30, 2026. The company intends to use the proceeds towards funding a portion of the cash consideration for the $700 million Pilot Water Solutions acquisition announced in September, and the offering is significant relative to the company's $2.5 billion market cap and will increase leverage.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Select Water priced its notes offering at $900 million, upsized from $800 million, with a 7.625% coupon, maturing November 1, 2034, at par, for net proceeds of about $882.6 million.
· PR Newswire — Select Water priced the notes offering at $900 million, upsized from $800 million, with a 7.625% coupon, maturing November 1, 2034, and priced at par.
- Issuer is Select Water Holdings LLC, a subsidiary of Select Water Solutions, Inc.
- Interest payable on May 1 and November 1 each year.
- First interest payment on May 1, 2027.
- Guaranteed jointly and severally on senior unsecured basis by existing subsidiaries that are borrowers or guarantors under revolving credit facility and future restricted subsidiaries that guarantee certain indebtedness under any credit facility.
- Offering expected to close on October 21, 2026, subject to customary closing conditions.
- Proceeds will repay outstanding obligations under term loan facility in full and repay any outstanding loans plus accrued and unpaid interest under existing revolving credit facility.
- Proceeds will pay fees, premiums, expenses and costs incurred in connection with the foregoing and related transactions.
- Offering is not contingent on consummation of Pilot Water Acquisition.
- Issuer must redeem notes if Pilot Water Acquisition not completed by March 1, 2027 or later outside date as extended by agreement.
- Issuer must redeem notes if prior to outside date it notifies trustee that Pilot Water Acquisition agreement terminated without closing or it will not pursue consummation.
- Redemption amount is principal amount of notes issued less $450 million.
- Redemption price is 100% of issue price plus accrued and unpaid interest to, but excluding, redemption date.
- Issuer must notify U.S. Bank Trust Company, National Association, the trustee of the Notes, regarding Pilot Water Acquisition termination or non-pursuit for redemption.
· SEC 8-K — Select Water Holdings executed a $500 million revolving credit facility with a $50 million letter of credit sublimit, effective upon the Pilot Water acquisition closing, and provided pro forma financials showing $874.9 million total debt as of June 30, 2026.
At the time of this announcement, WTTR was trading at $19.31 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $9.29 to $22.55. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.