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): July 3, 1996; (July 3, 1996)
KEY ENERGY GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland 1-8038 04-2648081
(State or other jurisdiction (Commission File Number) IRS Employer
of incorporation) Identification No.)
255 Livingston Avenue
New Brunswick, New Jersey 08901
(Address of principal executive offices, including zip code)
(908) 247-4822
(Registrant's telephone number, including area code)
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Item 5. Other Events.
On July 3, 1996 Key Energy Group, Inc. ("Key") completed a private
placement offering of Key's convertible subordinated debentures (the "Private
Placement").
For more information about the Private Placement, see Key's press release,
dated July 3, 1996, which is attached herewith as Exhibit 99 and incorporated by
reference herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99 - Press Release, dated July 3, 1996
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SIGNATURES
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 GROUP, INC.
By: /s/ Francis D. John
Francis D. John, President
Date: July 3, 1996
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EXHIBIT INDEX
Number Description Page Number
99 Press Release, dated July 3, 1996 4
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Exhibit 99
Key Energy Group, Inc.
Completes $52 Million Private Placement
of Convertible Subordinated Debentures
NEW BRUNSWICK, NJ, July 3, 1996--Key Energy Group, Inc. (AMEX:KEG)
announced today that the Company has completed a $52 million private placement
of Convertible Subordinated Debentures. The debentures pay interest at 7%
annually and are due July 1, 2003. The debentures are convertible into Key
Common Stock at $9.75 at any time after November 1, 1996.
The proceeds will be used to repay existing bank debt that carries variable
interest rates in excess of 9.25%. The balance of the proceeds will be used to
fund acquisitions and the expansion of existing operations. The offering was
completed by McMahan Securities Co. L.P. of Greenwich, Connecticut and Rauscher
Pierce Refsnes, Inc. of Houston, Texas.
Francis D. John, President and CEO of the Company, stated "the
successful placement of this $52 million of debentures significantly lowers the
Company's annual interest expenses, provides the Company with cash and borrowing
ability to continue its rapid expansion in both its well services operations as
well as its oil and gas production subsidiary." The Company now intends to
continue its successful program of purchasing smaller well service companies
and/or assets and consolidating them into Key's existing operations.
Within the past year the Company has increased its well service and
workover rigs from 135 to over 325, giving Key the third largest fleet of well
service rigs in the United States, and doubled its oil and gas reserves.
Key Energy Group, Inc. is a diversified energy company involved in well
servicing operations in Oklahoma, Texas, Michigan, Pennsylvania, West Virginia
and Argentina, as well as drilling and production of crude oil and natural gas
in the Permian Basin of West Texas.
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