KLX Energy Services Raises $37.2 Million in Rights Offering

KLX Energy Services has concluded its subscription rights offering, securing $37.2 million in gross proceeds. The Houston-based firm plans to utilize the bulk of these funds for corporate operations, while simultaneously executing a significant debt reduction strategy involving its 2030 senior secured notes.

Money Talk·September 25, 2026·reads: 455

The company expects to issue 24,975,001 shares of common stock at a subscription price of $1.49 per share. Of the total capital raised, $31.0 million is earmarked for general corporate purposes, including transaction expenses. The remaining $6.2 million will be applied toward the redemption of the company’s 2030 notes at par, along with accrued interest.

This capital raise is part of a broader financial restructuring supported by existing noteholders. Through a backstop agreement, these stakeholders are exchanging their holdings for equity, which will reduce the outstanding principal of the 2030 notes by $94.0 million. Following the completion of both the rights offering and the backstop exchange, KLX anticipates having approximately 105.7 million shares of common stock outstanding. Distribution of the new shares and proceeds is scheduled for September 29, 2026.