Nine Energy Service Announces the Redemption of its 2023 Senior Notes, Completion of its Public Offering of Units and Extension of its ABL Facility

Nine Energy Service, Inc. ("Nine" or the "Company") (NYSE: NINE) announced today the redemption of all of its outstanding 8.750% Senior Notes due 2023 ( the “2023 Senior Notes”), which was partially funded with the net proceeds from its underwritten public offering of 300,000 units, each comprised of $1,000 principal amount of 13.000% Senior Secured Notes due 2028 (the “2028 Senior Secured Notes”) and five shares of Nine’s common stock.

In conjunction with the units offering, Nine amended and extended its existing asset-based revolving credit facility (the “ABL Facility”). Pursuant to such amendment, among other things, the maturity date of the ABL Facility has been extended from October 25, 2023 to January 29, 2027.

“We are extremely pleased to complete this refinancing and to fully redeem all of the outstanding 2023 Senior Notes,” said Ann Fox, President and CEO, Nine Energy Service. “With a new capital structure in place, Nine now has more optionality to unlock equity value and intends to continue to de-lever. Due to the asset-light nature of our business, we expect to generate free cash flow moving forward, which will be used to repay borrowings under the ABL Facility and reduce term debt.”

“I am extremely proud of the Nine employees and their ability to navigate through one of the worst downturns in history without compromising the quality of the Company, now enabling us to capitalize on the recovery and successfully complete this refinancing. The entire team at Nine takes the stewardship of this capital very seriously and we will continue to prudently invest in the business and focus on generating returns.”

2028 Senior Secured Notes

Nine’s offering of 300,000 units consisted of $300 million aggregate principal amount of 2028 Senior Secured Notes and 1.5 million shares of its common stock. The public offering price per unit was $950, generating net proceeds of $279,750,000, after underwriting discounts and commissions. Among other things, the 2028 Senior Secured Notes include a provision which requires the Company at the end of each 6 months, beginning on November 14, 2023, to make an offer to purchase at 100% to all holders in an amount equal to 75% of excess cash flow for the prior two quarters.