Cross Ocean takes 21.3% of KLX Energy Services after swapping $32.4m of notes for shares

Funds managed by Cross Ocean Partners Management LP are deemed to beneficially own about 21.3% of the common stock of KLX Energy Services Holdings, Inc. (CIK 1738827), a total of 22,495,104 shares, according to a Schedule 13D filed with the SEC on 6 October 2026.

The Cross Ocean managed funds acquired 21,890,180 of those shares on 29 September 2026, on closing of a backstop exchange. In return they gave up approximately $32.4 million in principal of KLX's 2030 notes, plus about $0.2 million of accrued and unpaid interest. (Schedule 13D, Item 3, filed 6 October 2026)

The exchange sat alongside a rights offering in which KLX distributed transferable subscription rights to eligible holders of record, allowing them to buy common stock at $1.49 a share. (Schedule 13D, Item 4)

The 21.3% figure is calculated on 105,677,168 shares expected to be outstanding once the rights offering and the backstop exchange are taken into account. One fund, Cross Ocean GSS Master Fund LP, reports 8,358,619 shares on its own, or 7.9%. (Schedule 13D, cover pages and Item 5)

Under a backstop agreement dated 6 August 2026, a backstop party that holds at least 10% of KLX's common stock together with its controlled affiliates may designate one person for appointment to the board. The right continues while it holds at least 7.5%. (Schedule 13D, Item 6)

The filing also lists an amended indenture for the 2030 notes and a registration rights agreement, both dated 29 September 2026. The reporting persons say they hold the securities for investment purposes and may buy or sell more depending on market conditions and their view of the business. (Schedule 13D, Items 4 and 6)

The filings do not state whether Cross Ocean has used its right to designate a director. Loro has made no approach to the company. Figures are as reported in Cross Ocean Partners' SEC filings.