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): September 4, 2015 (September 2, 2015)
KEY ENERGY SERVICES, INC.
(Exact Name of Registrant as Specified in Charter)
Maryland | 001-08038 |
04-2648081 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1301 McKinney Street, Suite 1800
Houston, Texas 77010
(Address of Principal Executive Offices and Zip Code)
713-651-4300
(Registrants 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 (see General Instruction A.2. below):
¨ | 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)) |
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On September 2, 2015, Key Energy Services, Inc. (the Company) was notified by the New York Stock Exchange (the NYSE) that it was not in compliance with the continued listing standards set forth in Section 802.01C of the NYSE Listed Company Manual because the average closing price of the Companys common stock was less than $1.00 over a consecutive 30 trading-day period.
The Company anticipates it will notify the NYSE by September 17, 2015 that it intends to cure the deficiency and to return to compliance with the NYSE continued listing requirement. The Company can avoid delisting if, during the six-month period following receipt of the NYSE notice, on the last trading-day of any calendar month, the Companys common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. The Company intends to consider available alternatives, potentially including a reverse stock split, in order to cure the stock price deficiency and return to compliance with the NYSE continued listing requirement. As a Maryland corporation, a reverse stock split would only require approval of the Companys Board of Directors.
If the Companys common stock ultimately were to be delisted for any reason, including failure to regain compliance with Section 802.01C of the NYSE Listed Company Manual, it could negatively impact the Company by (i) reducing the liquidity and market price of the Companys common stock; (ii) reducing the number of investors willing to hold or acquire the Companys common stock, which could further harm the performance of the Companys common stock and negatively impact the Companys ability to raise equity financing; (iii) limiting the Companys ability to use a registration statement to offer and sell freely tradable securities, thereby preventing the Company from accessing the public capital markets; and (iv) impairing the Companys ability to provide equity incentives to its employees.
Under the NYSE rules, the Companys common stock will continue to be traded on the NYSE during this period, subject to the Companys compliance with other continued listing requirements. The NYSE notification does not affect Keys business operations or its Securities and Exchange Commission (SEC) reporting requirements and does not conflict with or cause an event of default under any of the Companys material debt or other agreements.
Item 7.01 Regulation FD Disclosure
As required by Section 802.01C of the NYSE Listed Company Manual, the Company issued a press release on September 4, 2015, announcing that it had received the notice of noncompliance with the NYSEs continued listing standard. A copy of the press release is furnished herewith as Exhibit 99.1.
The information furnished pursuant to this Item 7.01 and Exhibit 99.1 shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01. Financial Statements and Exhibits
(d) | Exhibits. |
99.1 | Press Release of Key Energy Services, Inc. issued September 4, 2015. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEY ENERGY SERVICES, INC. | ||||||
Date: September 3, 2015 | By: | /s/ J. Marshall Dodson | ||||
Sr. Vice President and Chief Financial Officer |
Exhibit Index
Exhibit No. |
Description | |
99.1 | Press Release of Key Energy Services, Inc. issued September 4, 2015. |