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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 14, 2025

 

 

KLX ENERGY SERVICES HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-38609   36-4904146
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

3040 Post Oak Boulevard, 15th Floor

Houston, Texas 77056

(Address of Principal Executive Offices) (Zip Code)

(832) 844-1015

(Registrant’s Telephone Number, Including Area Code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.01 Par Value   KLXE   The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

 

 

 


Item 1.01

Entry into a Material Definitive Agreement.

As previously disclosed in its filings with the U.S. Securities and Exchange Commission, on June 14, 2021, KLX Energy Services Holdings, Inc. (the “Company”) entered into an Equity Distribution Agreement (the “Original Agreement”) with Piper Sandler & Co. as sales agent (the “Agent”), as amended by Amendment No. 1 to Equity Distribution Agreement, dated as of November 16, 2022 (the “First Amendment” and together with the Original Agreement, the “Agreement”), by and between the Company and the Agent. Pursuant to the terms of the Agreement, the Company may sell from time to time through the Agent the Company’s common stock, par value $0.01 per share (“Common Stock”), initially having an aggregate offering price of up to $50 million (the “ATM Offering Program”). Sales of Common Stock, if any, under the Agreement may be made in any transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act of 1933.

As previously disclosed in the Company’s public filings, from June 14, 2021 to June 11, 2024, the Company sold a total of 4,183,513 shares of Common Stock at a weighted average price of $7.83 per share under the ATM Offering Program. The net proceeds as a result of these sales of Common Stock were approximately $31.8 million after deducting commissions and fees. Sales and issuances of Common Stock under the Agreement were initially made pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-256149) effective on June 11, 2021, which expired on June 11, 2024 with respect to the ATM Offering Program.

The board of directors of the Company approved an increase in the size of the ATM Offering Program up to approximately $57.75 million (which amount includes all of the shares previously sold pursuant to the Agreement to date), so that the remaining capacity under the ATM Offering Program going forward equals $25 million. The Company entered into Amendment No. 2 to the Agreement on March 14, 2025 (the “Second Amendment”) to reflect this increase in the aggregate offering price of the ATM Offering Program.

On March 14, 2025, the Company will file a prospectus supplement to the Company’s shelf registration statement on Form S-3 (Registration No. 333-271182) effective on April 19, 2023 to cover the offer and sale of up to $25 million of shares of Common Stock from time to time through the Agent, which represents the remaining capacity under the ATM Offering Program.

The foregoing description of the material terms of the Agreement is qualified in its entirety by reference to the full text of the Original Agreement, a copy of which was filed as Exhibit 1.1 to the Company’s Current Report on Form 8-K filed on June 14, 2021, and the full text of the First Amendment, a copy of which was filed as Exhibit 1.1 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2023, both of which are incorporated herein by reference. The foregoing description of the Second Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Second Amendment, a copy of which is filed herewith as Exhibit 1.1 and is incorporated by reference herein. The legal opinion of Vinson & Elkins L.L.P., counsel to the Company, relating to the legality of the issuance and sale of Common Stock pursuant to the Agreement, as amended, is filed herewith as Exhibit 5.1.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit
No.
  

Description

1.1    Amendment No. 2 to Equity Distribution Agreement, dated March 14, 2025, by and between the Company and the Agent.
5.1    Opinion of Vinson & Elkins L.L.P.
23.1    Consent of Vinson & Elkins L.L.P. (included in its opinion filed as Exhibit 5.1).
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    KLX ENERGY SERVICES HOLDINGS, INC.
March 14, 2025     By:  

/s/ Max L. Bouthillette

    Name:   Max L. Bouthillette
    Title:   Executive Vice President, General Counsel
      and Chief Compliance Officer

 

3

EX-1.1 2 d898044dex11.htm EX-1.1 EX-1.1

Exhibit 1.1

KLX ENERGY SERVICES HOLDINGS, INC.

AMENDMENT NO. 2 TO EQUITY DISTRIBUTION AGREEMENT

March 14, 2025

PIPER SANDLER & CO.

U.S. Bancorp Center

800 Nicollet Mall

Minneapolis, Minnesota 55402

Ladies and Gentlemen:

Reference is made to the Equity Distribution Agreement (the “Original Agreement”), dated as of June 14, 2021, by and between KLX Energy Services Holdings, Inc., a Delaware corporation (the “Company”), and you, as sales agent, as amended by Amendment No. 1 to Equity Distribution Agreement, dated as of November 16, 2022 (“Amendment No. 1” and together with the Original Agreement, the “Agreement”). Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Agreement.

The Company filed a successor Registration Statement with the Commission on April 7, 2023, which the Commission declared effective as of April 19, 2023. On the date hereof, the Company will file a prospectus supplement to the base prospectus included as part of the successor Registration Statement specifically relating to the Shares.

In connection with the foregoing, the parties hereto wish to amend the Agreement through this Amendment No. 2 to Equity Distribution Agreement (this “Amendment”) to make certain changes to the Agreement with effect on and after the date hereof (the “Effective Date”).

SECTION 1. Amendments to the Agreement. The parties hereto agree, from and after the Effective Date, that:

(a) Section 1(a)(i) of the Agreement is hereby amended to add the following sentence to the end of such Section:

“To the extent that the Company elects to file a prospectus supplement to the base prospectus included as part of a successor Registration Statement with respect to the Shares, all references to “Prospectus Supplement” included in this Agreement shall be deemed to include such new prospectus supplement, including all documents incorporated by reference therein.”

(b) Section 1(a)(x) of the Agreement is hereby amended and restated in its entirety to read as follows:

“(x) Capitalization. The Company has an authorized capitalization as set forth in each of the Registration Statement and the Prospectus, and all of the issued shares of the Company have been duly authorized and validly issued, are fully paid and non-assessable, conform in all material respects to the description thereof contained in the Registration Statement and the Prospectus and were not issued in violation of any preemptive right, resale right, right of first refusal or similar right. All of the Company’s options, warrants and other rights to purchase or exchange any securities for shares of the Company’s capital stock have been duly authorized and validly issued, and conform in all material respects to the description thereof contained in the Registration Statement and the Prospectus. All of the issued shares of capital stock or other ownership interest of each subsidiary of the Company have been duly authorized and validly issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or claims, except for such liens, encumbrances, equities or claims (a) arising in connection with the Credit Agreement dated as of March 7, 2025, by and among the Company, Eclipse Business Capital LLC, as administrative agent, as collateral agent and as FILO administrative agent and the lenders party thereto, or any successor asset-based lending credit facility that may be described in the Prospectus (the “Credit Agreement”) and related security documents or the Company’s Indenture, dated March 12, 2025, among the Company, as the issuer, the guarantor parties thereto and U.S. Bank Trust Company, National Association as trustee and collateral agent, as may be amended or supplemented, or any successor indenture thereto that may be described in the Prospectus (the “Indenture”) and related security documents or (b) as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.”

(c) Section 1(a)(v) of the Agreement is hereby amended and restated in its entirety to read as follows:

“(v) [RESERVED].”

(d) Section 2(b) of the Agreement is hereby amended and restated in its entirety to read as follows:

“(b) Maximum Amount. Under no circumstances shall the aggregate number or aggregate value of the Shares sold pursuant to this Agreement exceed: (i) the aggregate number and aggregate dollar amount of shares of Common Stock available for issuance and sale under the currently effective Registration Statement and any successor Registration Statements that have been declared effective, (ii) the aggregate number of authorized but unissued shares of Common Stock that are available for issuance under the Company’s Amended and Restated Certificate of Incorporation or (iii) the aggregate number or aggregate dollar amount of shares of Common Stock for which the Company has filed any Prospectus Supplement in connection with the Shares (the lesser of (i), (ii) and (iii), the “Maximum Amount”).”

(e) Section 3(i) of the Agreement is hereby amended and restated in its entirety to read as follows:

“(i) Restrictions on Future Sales. During the term of this Agreement, except on any day on which the Company has elected not to deliver a Placement Notice, the Company will not, offer for sale, sell, contract to sell, pledge, grant any option for the sale of, enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition of Common Stock (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the Company or any affiliate, or otherwise issue or dispose of, directly or indirectly (or publicly disclose the intention to make any such offer, sale, pledge, grant, issuance or other disposition), any Common Stock or any securities convertible into or exchangeable for, or any options or rights to purchase or acquire, Common Stock, or permit the registration under the Securities Act of any Common Stock, such securities, options or rights, except for: (i) the registration of the Shares and the sales through the Agent pursuant to this Agreement, (ii) any transaction as to which the Agent is a participant or acting as the Company’s advisor or agent; (iii) sales of shares through any dividend reinvestment and stock purchase plan of the Company, (iv) the filing of registration statements on Form S-8; (v) sales of shares of restricted stock, performance units, restricted stock units and options granted pursuant to Specified Equity Plans, and the Common Stock issuable upon the exercise of such outstanding options or vesting of such restricted stock units, (vi) the issuance of shares pursuant to the exercise of warrants, (vii) the issuance of shares in connection with an exchange or exchanges of debt-for-equity effected in accordance with Section 3(a)(9) of the Securities Act and the interpretations thereunder, and (viii) issuance, grant or sale of Common Stock or securities convertible into Common Stock as consideration for mergers, acquisitions, other business combinations, joint ventures, strategic alliances and other business transactions occurring after the date of this Agreement which are not used primarily for capital raising purposes, in the case of each of (ii) and (iii), without giving the Agent at least three business days’ prior written notice specifying the nature of the proposed sale and the date of such proposed sale, so as to permit the Agent to suspend activity under this Agreement for such period of time as requested by the Company.”


SECTION 2. No Other Amendments; References to Agreements. Except as set forth in this Amendment, all other terms and provisions of the Agreement shall continue in full force and effect. All references to the Agreement in the Agreement or in any other document executed or delivered in connection therewith shall, from the date hereof, be deemed a reference to the Agreement as amended by this Amendment. Notwithstanding anything to the contrary contained herein, this Amendment shall not have any effect on offerings or sales of the Securities prior to the Effective Date or on the terms of the Agreement and the rights and obligations of the parties thereunder, insofar as they relate to such offerings or sales, including, without limitation, the representations, warranties and agreements (including the indemnification and contribution provisions) contained in the Agreement.

SECTION 3. Applicable Law. This Amendment will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York.

SECTION 4. Construction. The section and exhibit headings herein are for convenience only and shall not affect the construction hereof. References herein to any law, statute, ordinance, code, regulation, rule or other requirement of any governmental authority shall be deemed to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any governmental authority as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules and regulations promulgated thereunder.

SECTION 5. Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile or electronic mail (including, without limitation, “pdf”, “tif” or “jpg”) and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment and any certificate, agreement or other document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. For the purpose of this Section 5, “Electronic Signature” means any electronic symbol or process (including, without limitation, DocuSign and AdobeSign) attached to, or associated with, a contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.

(Signature Pages Follow)

 

2


If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement by and among the parties hereto in accordance with its terms.

 

Very truly yours,
KLX ENERGY SERVICES HOLDINGS, INC.
By:   /s/ Max L. Bouthillette
  Name:   Max L. Bouthillette
  Title:   Executive Vice President, General
    Counsel and Chief Compliance Officer

 

Signature Page to Amendment No. 2 to Equity Distribution Agreement


CONFIRMED AND ACCEPTED, as of the date first above written:
PIPER SANDLER & CO.
By:   /s/ Terry Padden
  Name: Terry Padden
  Title: Managing Director

 

Signature Page to Amendment No. 2 to Equity Distribution Agreement

EX-5.1 3 d898044dex51.htm EX-5.1 EX-5.1

Exhibit 5.1

 

LOGO

March 14, 2025

KLX Energy Services Holdings, Inc.

3040 Post Oak Boulevard, 15th Floor

Houston, TX 77056

Ladies and Gentlemen:

We have acted as counsel to KLX Energy Services Holdings, Inc., a Delaware corporation (the “Company”), with respect to certain legal matters in connection with the offer and sale from time to time (the “Offering”) by the Company of shares of the Company’s common stock, par value $0.01 per share (the “Securities”), with an aggregate sales price of up to $25 million, which may be offered and sold from time to time pursuant to the Equity Distribution Agreement, dated as of June 14, 2021 (the “Original Agreement”), between the Company and Piper Sandler & Co., as sales agent (the “Sales Agent”), as amended by Amendment No. 1 to the Equity Distribution Agreement, dated as of November 16, 2022 (the “First Amendment”), and Amendment No. 2 to the Equity Distribution Agreement, dated as of March 14, 2025 (the “Second Amendment” and, together with the Original Agreement and the First Amendment, the “Equity Distribution Agreement”).

A copy of the Original Agreement was filed with the Securities and Exchange Commission (the “Commission”) as an exhibit to the Company’s Current Report on Form 8-K filed on June 14, 2021, and a copy of the First Amendment was filed with the Commission as an exhibit to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2023. The Company expects to file a copy of the Second Amendment with the Commission as an exhibit to the Company’s Current Report on Form 8-K filed on or about the date hereof.

The Securities will be offered for sale pursuant to a prospectus supplement dated March 14, 2025 (the “Prospectus Supplement”), that will be filed with the Commission pursuant to Rule 424(b)(5) on or after March 14, 2025, to a prospectus dated April 19, 2023 (as amended and supplemented by the Prospectus Supplement, the “Prospectus”) that constitutes a part of the Company’s Registration Statement on Form S-3 (Registration No. 333-271182), filed with the Commission on April 7, 2023 (the “2023 Registration Statement”) and declared effective by the Commission on April 19, 2023.

In rendering the opinions set forth below, we have reviewed (i) the Equity Distribution Agreement; (ii) the 2023 Registration Statement; (iii) the Prospectus Supplement; (iv) the Prospectus; (v) the Amended and Restated Certificate of Incorporation of the Company, as amended; (vi) the Fourth Amended and Restated Bylaws of the Company, as amended; (vii) resolutions (the “Resolutions”) adopted by the Board of Directors of the Company relating to the 2023 Registration Statement, the Offering, the Equity Distribution Agreement and related matters, including those resolutions authorizing the Company’s Chief Executive Officer, Chief Financial Officer, President, General Counsel, Secretary, any executive vice president and any such officer’s designees (each individually an “Authorized Officer,” and collectively, the “Authorized Officers”)

 

 

Vinson & Elkins LLP Attorneys at Law

Austin Dallas Denver Dubai Dublin Houston London Los Angeles

New York Richmond San Francisco Tokyo Washington

  

845 Texas Ave., Suite 4700

Houston, TX 77002

Tel +1.713.758.2222 Fax +1.713.758.2346 velaw.com


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   March 14, 2025 Page 2

 

to, among other things, effect sales under the Equity Distribution Agreement; and (viii) such other certificates, statutes and other instruments and documents as we considered appropriate for purposes of the opinions hereafter expressed. In addition, we have reviewed such questions of law as we considered appropriate. As to matters of fact relevant to the opinions expressed below, and as to factual matters arising in connection with our review of corporate documents, records and other documents and writings, we have relied upon certificates and other communications of corporate officers of the Company, without further investigation as to the facts set forth therein.

For purposes of rendering the opinions set forth below, we have made the following assumptions:

 

  (i)

each document submitted to us for review is accurate and complete, each such document that is an original is authentic, each such document that is a copy conforms to an authentic original, and all signatures on each such document are genuine;

 

  (ii)

each person signing the documents that we reviewed has the legal capacity and authority to do so;

 

  (iii)

each certificate from governmental officials reviewed by us is accurate, complete and authentic, and all official public records are accurate and complete;

 

  (iv)

no stop orders suspending the 2023 Registration Statement’s effectiveness will have been issued and remain in effect, in each case, at the time the Securities are offered or issued as contemplated by the 2023 Registration Statement and the Prospectus;

 

  (v)

all Securities will be issued and sold in compliance with applicable federal and state securities laws and in the manner stated in the 2023 Registration Statement, Prospectus, Prospectus Supplement and Equity Distribution Agreement; and

 

  (vi)

the Equity Distribution Agreement has been duly authorized and validly executed and delivered by the Sales Agent and constitutes a legal, valid and binding obligation of the Sales Agent, and the Sales Agent has the requisite organizational and legal power and authority to perform its obligations under the Equity Distribution Agreement.

Based on the foregoing, and subject to the assumptions, qualifications, limitations and exceptions set forth herein, we are of the opinion that the Securities to be issued and sold by the Company as contemplated by the Equity Distribution Agreement have been duly authorized for issuance and, upon approval of the terms of any sale of Securities pursuant to the Equity Distribution Agreement by an Authorized Officer pursuant to the Resolutions and payment and delivery in accordance with the Equity Distribution Agreement, the Prospectus Supplement and the Prospectus, will be validly issued, fully paid and non-assessable.


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   March 14, 2025 Page 3

 

The foregoing opinions are limited in all respects to the Delaware General Corporation Law (including the applicable provisions of the Delaware Constitution and the reported judicial decisions interpreting these laws) and the federal laws of the United States of America as in effect on the date hereof, and we undertake no duty to update or supplement the foregoing opinions to reflect any facts or circumstances that may hereafter come to our attention or to reflect any changes in any law that may hereafter occur or become effective. We express no opinion as to the effect of the laws of any other jurisdiction, domestic or foreign, or to any matter other than as expressly set forth above, and no opinion on any other matter may be inferred or implied herefrom.

We hereby consent to the filing of this opinion as an exhibit to the Company’s Current Report on Form 8-K, to be filed on or about the date hereof, and to the use of our name in the Prospectus Supplement under the caption “Legal Matters.” By giving such consent, we do not admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Commission thereunder.

 

Very truly yours,
/s/ Vinson & Elkins L.L.P.
VINSON & ELKINS L.L.P.