Prospect Capital Corporation has provided a $21.5 million senior secured loan to support the acquisition of CP Well Testing, a provider of flowback services to oil and gas companies, by Hastings Equity Partners.
“We are delighted to work with Prospect Capital as a knowledgeable financing provider with domain expertise in the energy sector and beyond,” said Ted Patton, a Managing Director of Hastings. “We look forward to Prospect’s quick-turn responsiveness as we grow CP Well Testing and pursue other acquisition opportunities.”
CP Well Testing is a provider of flowback services to oil and gas companies operating in Western Oklahoma and the Texas Panhandle. The company’s services include providing equipment and personnel to remove gas, fluids, sand, and proppants (materials used to keep a hydraulic fracture open) from the well bore after fracking and before commercial production begins. CP Well Testing is based in Elk City, OK (no website found).
“CP provides services in a region with compelling drilling economics to well-capitalized customers with robust development plans, and Prospect is pleased to support Hastings as an experienced investor in oilfield service companies,” said Mark Hull, a Principal of Prospect Capital Management.
Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in wide array of industries and is effectively industry agnostic. The firm is located in New York (www.prospectstreet.com).
Prospect has closed more than $1.6 billion of originations to date in the current 2012 calendar year. Prospect’s advanced investment pipeline aggregates more than $600 million of potential opportunities.
Hastings Equity Partners invests from $5 million to $15 million in niche manufacturing, distribution, and business services companies with EBITDAs from of $2 million to $10 million. The firm is based in Waltham, MA (www.hastingsequity.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-19-12