According to Fuel Fix, due to low oil prices C&J Energy Services Inc. put their loan on hold.
C&J Energy, a Houston, Texas-based hydraulic- fracturing company, has postponed its $650 million loan that will fund the company’s merger with Nabors Industries Ltd.
C&J Energy commented on the loan being put on hold:
C&J Energy Services remains on track to close the transaction with Nabors’ completion and production services business in January of 2015. The transaction is fully financed and the decision made to temporarily delay the term loan B process in no way impacts our ability to finance or complete the deal. Given the pricing and other terms available under the committed financing arrangements, coupled with the uncertainty of current market conditions, we decided to withdraw the loan from the market for now but we may be back once conditions improve.
The $2 billion merger had a slight hiccup last month when C&J investors obtained a court order that forced the company to search for alternative bids. Investors and the courts agreed the company failed to find the best deal available for its investors.
C&J Energy’s merger with Nabors production and completion business would make the combined company the third largest oilfield service company, right behind the newly combined Halliburton and Baker Hughes company.
Although C&J Energy is purchasing Nabors business, Nabors will own 53 percent of the new C&J company. This is part of an inversion deal. C&J will keep its operational headquarters in Houston but will become formally based out of the Bahamas for tax reasons. In the proposed merger, C&J Energy is paying $940 million in cash and 62.5 million in common shares in the company’s new stock.