SOURCE: NYTEX Energy Holdings Inc.

NYTEX Energy Holdings Inc.

November 08, 2011 08:00 ET

NYTEX Energy Holdings Inc. Announces Amendment to Bank Revolving Credit, Term Loan and Security Agreement

DALLAS, TX--(Marketwire - Nov 8, 2011) - NYTEX Energy Holdings, Inc. (OTCQB: NYTE) (OTCBB: NYTE) (the "Company" or "NYTEX"), a Dallas-based energy holding company comprising two wholly owned subsidiaries, Francis Drilling Fluids, Ltd. ("FDF") and NYTEX Petroleum, Inc., announced today an amendment to its Revolving Credit, Term Loan and Security Agreement and Limited Waiver with its current bank, PNC Bank. The effective date of this Amendment and Waiver is November 1, 2011.

As detailed in the 8K being filed with the Securities and Exchange Commission, this Amendment waives each of the existing events of default under the Senior Facility, including the breach of the fixed charge coverage ratio and the breach of the reporting requirement covenant, as previously reported in the Company's Form 10-K for the fiscal year ended December 31, 2010. The Amendment also amends the Senior Facility, to, among other things:

  • Require the Borrowers to obtain third-party financing for certain unencumbered real property of FDF no later than 180 days;
  • Modify the calculation of the fixed charge coverage ratio covenant;
  • Set monthly limitations on capital expenditures;
  • Modify the limitations on distributions;
  • Modify the limitations on certain indebtedness;
  • Modify the limitations on certain transactions with affiliates and
  • Modify the timing and amount of any early termination fee.

Michael Galvis, NYTEX President and CEO, commented, "We are extremely pleased to achieve these amended terms as we are now at a stage in our business where we are aggressively moving forward with our plans to expand our oil production and related oilfield services. We continue to reach record revenues and sales volume from our subsidiary, Francis Drilling Fluids, Ltd. due to the industry's demand for our technologically advanced oilfield products and services, and are projecting both top and bottom-line growth from all company segments going forward. PNC Bank has been on board with us through our market expansion and we are pleased they have continued confidence in our ability to move further ahead."

About NYTEX Energy Holdings, Inc.
NYTEX Energy Holdings, Inc. (OTCBB: NYTE) is a Dallas-based energy holding company consisting of two wholly-owned subsidiaries, Francis Drilling Fluids, Ltd. ("FDF") and NYTEX Petroleum, Inc. Francis Drilling Fluids is a 34-year-old drilling fluids service company. Headquartered in Crowley, LA, FDF is the leading single frac sand, ceramic proppant and water-based liquid drilling mud distributor in the United States. FDF provides services to oilfield clients in 39 states, and includes the Marcellus, Bakken, Barnett, Haynesville, Fayetteville and Bossier natural gas shale plays. NYTEX Petroleum, Inc. is an exploration and production company focusing on early stage development of minor oil and gas resource plays. For more information please go to and

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including future growth and earnings opportunities of the Company. Actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including the Company's ability to retain and to promptly satisfy current backorders and other economic, competitive, governmental, technological, regulatory, manufacturing and marketing risks associated with the Company's business and financial plans. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the Company's most recent filings with the Securities and Exchange Commission.

Contact Information

  • Investor Relations Contact:
    Stanley Wunderlich
    Consulting for Strategic Growth 1 Ltd.
    Tel: 800-625-2236 ext. 7770