KLX Energy Services Holdings, Inc. completed a subscription rights offering on September 29, 2026, generating gross proceeds of $37.2 million. The Houston-based oilfield services company used the capital to redeem a portion of its senior secured floating rate cash and payment-in-kind notes due 2030, a move that reduces the outstanding principal of that debt by $94.0 million.
The offering, which expired at 5:00 p.m. New York City time on September 23, 2026, resulted in the purchase of 24,975,001 shares of KLX common stock at a subscription price of $1.49 per share. The company expects to use $31.0 million of the gross cash proceeds for general corporate purposes, including fees and expenses associated with the offering. The remaining $6.2 million will be used to redeem the 2030 notes at par value, plus accrued and unpaid interest.
The transaction was backstopped by existing holders of the 2030 notes, known as the Backstop Parties, who committed an aggregate of $94.0 million under a Rights Offering Backstop Agreement. This commitment amount is expected to be reduced to $87.8 million following the redemption of $6.2 million in notes with the offering proceeds. Individual Backstop Parties were subject to a 30% ownership limitation on a pro forma fully diluted basis.
Under the terms of the Backstop Exchange, the Backstop Parties exchanged their 2030 notes for KLX common stock at the subscription price. The exchange involved notes held at 100% of their principal amount plus accrued and unpaid interest. As a result of this exchange, an aggregate of 59,273,445 shares of common stock will be issued to the Backstop Parties. The combination of par redemptions from excess offering proceeds and the exchange of notes for stock drives the total reduction in the outstanding principal amount of the 2030 notes to $94.0 million.
Following the completion of the rights offering and the backstop exchange, KLX expects to have 105,677,168 shares of common stock issued and outstanding. At the close of the backstop exchange, KLX signed a new amended indenture that now governs the 2030 notes.
Subscription rights holders who participated in the offering will receive their shares in uncertificated book-entry form. Computershare Trust Company, N.A., acting as the subscription agent, will return any excess subscription payments to rights holders via check without interest or deduction.
The rights offering was conducted under KLX's existing effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission. A prospectus supplement and accompanying base prospectus were filed with the SEC on August 24, 2026.
KLX describes itself as a growth-oriented provider of diversified oilfield services to onshore oil and natural gas exploration and production companies across major U.S. basins. The company operates from over 60 service and support facilities throughout the United States, focusing on drilling, completion, production, and intervention activities.