KLX Energy Services Announces Preliminary Results Of Previously Announced $37.2M Subscription Rights Offering To Fund Debt Redemption And Growth

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) ("KLX" or the "Company") announced today the preliminary results of its previously announced subscription rights offering (the "Rights Offering"), which expired at 5:00 p.m., New York City time, on September 23, 2026 (the "Expiration Date"). Subscription rights that were not exercised by the Expiration Date have expired and are no longer exercisable.

According to Computershare Trust Company, N.A. (the "Subscription Agent"), as of the Expiration Date, 6,385,123 basic subscription rights were exercised to purchase an aggregate of 24,806,099 shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), and 168,902 additional shares of Common Stock were subscribed for pursuant to the over-subscription privilege.

In the aggregate, the Company is expected to issue 24,975,001 shares of Common Stock pursuant to the Rights Offering at the subscription price of $1.49 per whole share (the "Subscription Price") for gross proceeds of $37.2 million to the Company. Of the $37.2 million gross cash proceeds from the Rights Offering, the Company expects to use $31.0 million for general corporate purposes, including to pay fees and expenses in connection with the Rights Offering, and $6.2 million to redeem the 2030 Notes (as defined below) at par, plus accrued and unpaid interest. 

After giving effect to the Rights Offering and the Backstop Exchange (as defined below), the Company expects to have approximately 105.7 million shares of Common Stock issued and outstanding. Upon completion of the Backstop Exchange, the outstanding pricinipal amount of the 2030 Notes will be reduced by $94.0 million as a result of the combination of par redemptions from excess proceeds in the Rights Offering and the exchange of 2030 Notes for Common Stock in the Backstop Exchange. 

The Company expects the Subscription Agent to distribute the shares of Common Stock and the proceeds from the Rights Offering on or about September 29, 2026, subject to customary closing conditions.