According to a recent filing with the Securities and Exchange Commission, Edward A. Mule and his fund, Silver Point Capital, have established a fresh stake in post-bankruptcy Key Energy Services Inc (NYSE:KEG). The fund has acquired approximately 1.34 million shares, which amount to 6.7% of the company’s common stock.
Billionaire George Soros‘ family office, Soros Fund Management, has also reported a new investment in Key Energy Services Inc (NYSE:KEG) recently. According to regulatory filings, the fund amassed 1.83 million shares or 9.09% of the company’s outstanding stock.
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An oilfield services company, Key Energy Services Inc (NYSE:KEG) emerged from bankruptcy protection on December 15 and resumed trading as a public company on December 16. Key Energy said in a statement it managed to reorganize $694 million of its long-term debt and have eliminated approximately $45 million worth of annual interest payments going forward. Key company shareholders prior to the bankruptcy received 5% of the new company’s shares, while the remaining 95% were awarded to debt holders.
On November 15, Key Energy Services posted its third quarter results, having reported a net loss of $130.8 million. On a per-share basis, the company posted an adjusted loss of $0.43 per share, missing analysts’ estimates of $0.34 per share. Key Energy Services also reported $102.4 million in revenue.
You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Silver Point Capital | 1,344,497 | 0 | 1,344,497 | 0 | 1,344,497 | 6.7% |
| Edward A. Mul | 0 | 1,344,497 | 0 | 1,344,497 | 1,344,497 | 6.7% |
| Robert J. O Shea | 0 | 1,344,497 | 0 | 1,344,497 | 1,344,497 | 6.7% |
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Page 1 of 9 – SEC Filing
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Schedule 13G
(Rule 13d-102)
Information to be Included in Statements Filed Pursuant to Rules 13d-1(b), (c) and (d) and
Amendments Thereto Filed Pursuant to Rule 13d-2(b)
(Amendment No. ___)*
Key Energy Services, Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
49309J103
(CUSIP Number)
December 15, 2016
(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
| ☐ | Rule 13d-1(b) | ||
| ☒ | Rule 13d-1(c) | ||
| ☐ | Rule 13d-1(d) | ||
| *The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. | |||
| The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (the “Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). | |||
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Page 2 of 9 – SEC Filing
| CUSIP NO. 49309J103 13G | |||||
| 1 | NAMES OF REPORTING PERSONS | ||||
| Silver Point Capital, L.P. | |||||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) | (a) ☐ (b) ☒ | |||
| 3 | SEC USE ONLY | ||||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||
| Delaware | |||||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 5 | SOLE VOTING POWER | |||
| 1,344,497 | |||||
| 6 | SHARED VOTING POWER | ||||
| –0- | |||||
| 7 | SOLE DISPOSITIVE POWER | ||||
| 1,344,497 | |||||
| 8 | SHARED DISPOSITIVE POWER –0- | ||||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||
| 1,344,497 | |||||
| 10 | CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) | ☐ | |||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | ||||
| 6.7% 1 | |||||
| 12 | TYPE OF REPORTING PERSON* | ||||
| IA, PN | |||||
| 1 | The percentage used above is calculated based on 20,084,901 total shares of common stock outstanding as of December 15, 2016 as reported in the Issuer’s Form 8-K filed on December 15, 2016. |
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Page 3 of 9 – SEC Filing
| CUSIP NO. 49309J103 13G | |||||
| 1 | NAMES OF REPORTING PERSONS | ||||
| Edward A. Mulé | |||||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)* | (a) ☐
(b) ☒ | |||
| 3 | SEC USE ONLY | ||||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||
| United States | |||||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 5 | SOLE VOTING POWER | |||
| –0- | |||||
| 6 | SHARED VOTING POWER | ||||
| 1,344,497 | |||||
| 7 | SOLE DISPOSITIVE POWER | ||||
| –0- | |||||
| 8 | SHARED DISPOSITIVE POWER 1,344,497 | ||||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||
| 1,344,497 | |||||
| 10 | CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) | ☐ | |||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | ||||
| 6.7% 1 | |||||
| 12 | TYPE OF REPORTING PERSON* | ||||
| IN | |||||
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Page 4 of 9 – SEC Filing
| CUSIP NO. 49309J103 13G | |||||
| 1 | NAMES OF REPORTING PERSONS | ||||
| Robert J. O’Shea | |||||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) | (a) ☐ (b) ☒ | |||
| 3 | SEC USE ONLY | ||||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||
| United States | |||||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 5 | SOLE VOTING POWER | |||
| –0- | |||||
| 6 | SHARED VOTING POWER | ||||
| 1,344,497 | |||||
| 7 | SOLE DISPOSITIVE POWER | ||||
| –0- | |||||
| 8 | SHARED DISPOSITIVE POWER 1,344,497 | ||||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||
| 1,344,497 | |||||
| 10 | CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) | ☐ | |||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | ||||
| 6.7% 1 | |||||
| 12 | TYPE OF REPORTING PERSON* | ||||
| IN | |||||
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Page 5 of 9 – SEC Filing
| CUSIP No. 49309J103 | 13G |
| Item 1(a) | Name of Issuer: | |||
| The name of the issuer is Key Energy Services, Inc. (the “Company”). | ||||
| Item 1(b) | Address of Issuer’s Principal Executive Offices: | |||
| The Company’s principal executive office is located at 1301 McKinney Street, Suite 1800, Houston, Texas 77010. | ||||
| Item 2(a) | Name of Person Filing: | |||
| This Schedule 13G is being jointly filed by Silver Point Capital, L.P., a Delaware limited partnership (“Silver Point”), Mr. Edward A. Mulé and Mr. Robert J. O’Shea with respect to the ownership of the common stock of the Company by Silver Point Capital Fund, L.P. (the “Onshore Fund”) and Silver Point Capital Offshore Master Fund, L.P. (the “Offshore Fund”).2 Silver Point, Mr. Mulé and Mr. O’Shea are collectively referred to herein as the “Reporting Persons.” The Reporting Persons have entered into a Joint Filing Agreement, dated December 27, 2016, a copy of which is filed with this Schedule 13G as Exhibit A, pursuant to which the Reporting Persons have agreed to file this statement jointly in accordance with the provisions of Rule 13d-1(k)(1) under the Act. | ||||
| Item 2(b) | Address of Principal Business Office or, if none, Residence: | |||
| The address of the principal business office of each of the Reporting Persons is Two Greenwich Plaza, Greenwich, CT 06830. | ||||
| Item 2(c) | Citizenship: | |||
| Silver Point Capital, L.P. is organized as a limited partnership under the laws of the State of Delaware. Both Mr. Mulé and Mr. O’Shea are U.S. citizens. | ||||
| Item 2(d) | Title of Class of Securities: | |||
| Common Stock | ||||
| Item 2(e) | CUSIP No.: | |||
| 49309J103 | ||||
| Item 3 | If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b), check whether the person filing is a: | |||
| Not applicable. | ||||
| 2 | Silver Point is the investment manager of the Onshore Fund and the Offshore Fund and by virtue of such status may be deemed to be the beneficial owner of the securities held by the Onshore Fund and the Offshore Fund. Silver Point Capital Management, LLC (“Management”) is the general partner of Silver Point and as a result may be deemed to be the beneficial owner of the securities held by the Onshore Fund and the Offshore Fund. Each of Mr. Edward A. Mulé and Mr. Robert J. O’Shea is a member of Management and has voting and investment power with respect to the securities held by the Onshore Fund and the Offshore Fund and may be deemed to be a beneficial owner of the securities held by the Onshore Fund and the Offshore Fund. |
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Page 6 of 9 – SEC Filing
| CUSIP No. 49309J103 | 13G |
| Item 4 | Ownership: |
| A. | Silver Point Capital, L.P. |
| (a) | Amount beneficially owned: 1,344,497 |
| (b) | Percent of class: 6.7% | |
| (c) | Number of shares as to which such person has: |
| (i) | Sole power to vote or direct the vote: 1,344,497 | |
| (ii) | Shared power to vote or direct the vote: -0- |
| (iii) | Sole power to dispose or direct the disposition: 1,344,497 |
| (iv) | Shared power to dispose or direct the disposition: -0- |
| B. | Edward A. Mulé |
| (a) | Amount beneficially owned: 1,344,497 |
| (b) | Percent of class: 6.7% |
| (c) | Number of shares as to which such person has: |
| (i) | Sole power to vote or direct the vote: -0- | |
| (ii) | Shared power to vote or direct the vote: 1,344,497 |
| (iii) | Sole power to dispose or direct the disposition: -0- |
| (iv) | Shared power to dispose or direct the disposition: 1,344,497 |
| C. | Robert J. O’Shea |
| (a) | Amount beneficially owned: 1,344,497 |
| (b) | Percent of class: 6.7% |
| (c) | Number of shares as to which such person has: |
| (i) | Sole power to vote or direct the vote: : -0- | |
| (ii) | Shared power to vote or direct the vote: 1,344,497 |
| (iii) | Sole power to dispose or direct the disposition: -0- |
| (iv) | Shared power to dispose or direct the disposition: 1,344,497 |
| Item 5 | Ownership of Five Percent or Less of a Class: | |||
| If this statement is being filed to report the fact that as of the date hereof each of the Reporting Persons has ceased to be the beneficial owner of more than five percent of the class of securities, check the following [ ]. | ||||
| Item 6 | Ownership of More Than Five Percent on Behalf of Another Person: | |||
| See response to Item 4. | ||||
| Item 7 | Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company or Control Person: | |||
| Not applicable. | ||||
| Item 8 | Identification and Classification of Members of the Group: | |||
| Not applicable. | ||||
| Item 9 | Notice of Dissolution of Group: | |||
| Not applicable. | ||||
| Item 10 | Certification: | |||
| By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as participant in any transaction having that purpose or effect. | ||||
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Page 7 of 9 – SEC Filing
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: December 27, 2016
| Silver Point Capital, L.P. | ||||
| By: | /s/ Steven Weiser | |||
| Name: | Steven Weiser | |||
| Its: | Authorized Signatory | |||
| Edward A. Mulé | ||||
| By: | /s/ Steven Weiser | |||
| Name: | Steven Weiser | |||
| Title: | Attorney-in-fact | |||
| Robert J. O’Shea | ||||
| By: | /s/ Steven Weiser | |||
| Name: | Steven Weiser | |||
| Title: | Attorney-in-fact | |||
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Page 8 of 9 – SEC Filing
EXHIBIT INDEX
| Exhibit | Description of Exhibit | |
| Exhibit A | Joint Filing Agreement dated December 27, 2016. | |
| Exhibit B | Power of Attorney of Edward A. Mulé (incorporated here by reference to Exhibit B to Schedule 13G filed by Silver Point Capital, L.P., Edward A. Mulé and Robert O’Shea with the Securities and Exchange Commission on February 16, 2016 relating to TopBuild Corp.). | |
| Exhibit C | Power of Attorney of Robert O’Shea (incorporated here by reference to Exhibit C to Schedule 13G filed by Silver Point Capital, L.P., Edward A. Mulé and Robert O’Shea with the Securities and Exchange Commission on February 16, 2016 relating to TopBuild Corp.). | |
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Page 9 of 9 – SEC Filing
Exhibit A
AGREEMENT REGARDING THE JOINT FILING OF SCHEDULE 13G
The undersigned hereby agree as follows:
(i) Each of them is individually eligible to use the Schedule 13G to which this Exhibit is attached, and such Schedule 13G is filed on behalf of each of them; and
(ii) Each of them is responsible for the timely filing of such Schedule 13G and any amendments thereto, and for the completeness and accuracy of the information concerning such person contained therein; but none of them is responsible for the completeness or accuracy of the information concerning the other persons making the filing, unless such person knows or has reason to believe that such information is inaccurate.
Date: December 27, 2016
| Silver Point Capital, L.P. | ||||
| By: | /s/ Steven Weiser | |||
| Name: | Steven Weiser | |||
| Its: | Authorized Signatory | |||
| Edward A. Mulé | ||||
| By: | /s/ Steven Weiser | |||
| Name: | Steven Weiser | |||
| Title: | Attorney-in-fact | |||
| Robert J. O’Shea | ||||
| By: | /s/ Steven Weiser | |||
| Name: | Steven Weiser | |||
| Title: | Attorney-in-fact | |||
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