Prospect Capital Corp. (Nasdaq: PSEC) has provided US $94 million in senior secured loans and equity for the recapitalization of CP Energy Services Inc., an energy services company based in western Oklahoma.
CP Energy consists of CP Well Testing Inc., a leading provider of flowback services, and Fluid Management Holdings Inc., a premier operator of transport trucks and disposal wells. Both companies operate in the Anadarko basin of western Oklahoma and Texas. Senior managers of CP Well and Fluid Management made significant co-investments in CP Energy.
Based in Elk City, Okla., CP Well provides services that include the provision of equipment and personnel to remove gas, fluids, sand, and proppants from the well bore after fracking and before beginning commercial production. CP Well continues to expand its equipment fleet to service the needs of its large oil and gas customers, including geographic expansion to other regions at the request of its key customers.
Based in Weatherford, Okla., Fluid Management has six truck yard facilities and a growing portfolio of disposal well locations to meet the needs of its customers actively pursuing oil and gas drilling in the Fluid Management geographic footprint.
"CP Energy is led by a strong management team that we have gotten to know well over the past year through our involvement as a lender to CP Well. The integration of flowback services with fluid hauling and disposal is highly compelling and expected to enhance the overall service offering to customers. Prospect is enthusiastic about supporting the management team in its investment and is pleased to provide Hastings Equity Partners, a valued sponsor relationship, with a monetization opportunity to support their fund raising," said Mark Hull, a principal with Prospect Capital Management LLC, in the release.
"We are excited to work with Prospect Capital as a large financing provider with a long history of investing in the energy sector. We look forward to Prospect's proven responsiveness to provide funding for attractive expansion opportunities as we continue our growth to meet the demands of our customers," said Craig Wright, CP Energy's CEO, in the release.
Prospect has closed more than $1.7 billion of originations to date in the current 2013 calendar year. Prospect closed more than $3 billion of originations in the 12 months ended June 30. The company is based in New York.
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