Atlas Sand Company, a frac sand reserve holder in West Texas, has secured a $150 million credit facility from BlackGold Capital Management LP. The capital will be used to fund a portion of the ongoing construction of Atlas’ Kermit and Monahans frac sand plants and for general company purposes.
AUSTIN, Texas, Jan. 31, 2018 /PRNewswire/ — Atlas Sand Company, LLC (“Atlas,” “Atlas Sand,” or the “Company”) and BlackGold Capital Management LP (“BlackGold”) are pleased to announce the closing of a $150 million credit facility to fund a portion of the ongoing construction of Atlas’ Kermit and Monahans frac sand plants and for general company purposes.
The Company has committed to draw a minimum of $100 million under the credit facility with the additional $50 million to be available to the Company for a period of 12 months subsequent to closing. The Company is under no obligation to borrow additional funds under the credit facility.
With the closing of this financing, combined with equity capital that has been committed to date, Atlas has fully secured an amount of capital that the Company believes is sufficient to complete the construction of both the Kermit and Monahans plants.
Atlas Sand’s CFO, John Turner commented, “We’re very pleased to bring on a very experienced energy investor like BlackGold as a partner. BlackGold understands the size of the opportunity created by the ongoing Permian Basin frac sand disruption. This transaction represents another significant step towards our long-term growth plans.”
BlackGold Managing Partner, Adam Flikerski commented, “BlackGold is pleased to partner with the Atlas Sand team, highlighting both our excitement in the project itself and the secular shift in Permian Basin frac sand fundamentals.” BlackGold Managing Partner, Erik Dybesland added, “This new commitment to Atlas Sand builds upon the launch of our private structure fund last year, and underscores BlackGold’s commitment to being a solutions provider for companies in the natural resources industry.”
About Atlas Sand
Atlas Sand was founded organically by long-time E&P operators with significant experience in the Permian Basin alongside the best talent available in the sand mining industry. The Company was formed to provide the oil & gas industry access to the largest, highest quality frac sand reserves located in the heart of the most prolific resource plays of West Texas, including our high crush strength 40/70 and 100 mesh products. Please visit www.atlassand.com for further details regarding our history, management’s background, product offerings and specifications, sales information and employment opportunities.
BlackGold Capital Management LP is a leading investment firm focused on opportunistic catalyst-driven investments in the energy industry. The firm’s team has decades of experience and expertise in energy with extensive long-standing industry relationships. Founded in 2006, BlackGold seeks to generate compelling returns for its investors by employing a deep fundamental research-driven approach in analyzing energy assets and capital structures. The firm manages $1.2 billion in capital across its investment platform which includes public and private commingled strategies as well as managed accounts. KKR & Co. LP, a global investment firm that manages investments across multiple asset classes, holds a 24.9% passive minority interest in BlackGold Capital Management LP. For more information, please visit www.BlackGoldCap.com