Subsequent Events

12 Months Ended

Dec. 31, 2020

29. Subsequent Events

February 2021 Disposition

On February 10, 2021, we completed the sale of certain contract operations customer service agreements and approximately 300 compressors, comprising approximately 40,000 horsepower, used to provide compression services under those agreements as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets based on a ratio of the horsepower sold relative to the total horsepower of the asset group. A gain on the sale of approximately $6.0 million will be recognized in the first quarter of 2021.

Amendment No. 3 to Credit Facility

On February 22, 2021, we amended our credit facility to, among other things:

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reduce the aggregate revolving commitment from $1.25 billion to $750.0 million, and

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increase the maximum Total Debt to EBITDA ratios and reduce the maximum Senior Secured Debt to EBITDA ratio, as defined in the credit facility agreement, to the following:


Senior Secured Debt to EBITDA		3.00 to 1.0
Total Debt to EBITDA
Through fiscal year 2022		5.75 to 1.0
January 1, 2023 through September 30, 2023		5.50 to 1.0
Thereafter ⁽¹⁾		5.25 to 1.0

(1)	Subject to a temporary increase to 5.50 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter.

We incurred approximately $1.8 million in transaction costs related to Amendment No. 3 during the first quarter of 2021.