Stallion Oilfield Holdings Inc said Oct. 12 that it completed a recapitalization that resulted in Centerbridge Partners and Littlejohn & Co owning a significant portion of the company’s debt. Financial terms weren’t announced. Houston-based Stallion Oilfield is an energy services company.
October 12, 2016 11:00 AM Eastern Daylight Time
HOUSTON–(BUSINESS WIRE)–Stallion Oilfield Holdings Inc. (“Stallion,” or the “Company”), a leading energy services company that provides comprehensive wellsite support, production and logistics services to oil and natural gas exploration and production companies, today announced that it has completed a recapitalization of the Company in partnership with its secured lenders and its key equity holders to eliminate virtually all of its debt and restructure the Company’s balance sheet.
On October 11, Stallion completed a transaction with substantially all of its secured lenders that eliminates all of the Company’s outstanding debt obligations. The comprehensive restructuring transaction provides Stallion with a clean balance sheet, a healthy cash balance, and financial flexibility to continue to invest in the business and provide quality customer service while maintaining the highest level of safety in operations through investments in people, equipment and technology. The Company continues to perform well across all primary service lines despite the overall volatility in the oil and gas markets.
Mr. David Mannon, Stallion’s President and Chief Executive Officer said, “Stallion is a strong business because of our employees, our customer relationships, our sound business model, strong leadership team and excellent cash position. We have reduced our cost structure in response to this unprecedented decline in commodity prices and the prolonged period of time that it has taken for recovery to begin. Our new, stronger capital structure is consistent with the actions we have already taken to strengthen our operations. We are delighted that our new owners will support the various growth opportunities that exist for Stallion in a recovering oil and gas market, and we’re working together to ensure Stallion is poised to capitalize on those opportunities.”
As a result of this transaction, Stallion’s two largest shareholders are funds managed by leading private investment firms Centerbridge Partners and Littlejohn & Co. Together these two shareholders will own a significant portion of the Company’s equity.
Kyle Cruz, Senior Managing Director of Centerbridge said, “With the recapitalization behind us, Stallion will be very well positioned for success as activity levels in the North American oil and gas sector return. We are excited to partner with Littlejohn and Stallion’s management team and employees to build upon the Company’s strong foundation.”
Steven Raich, Managing Director of Littlejohn, said, “We are very confident in Stallion’s long term potential and we are pleased to invest in the company and support the management team as they move forward. The company is now properly capitalized to pursue its strategic growth initiatives, including strengthening its service offering and exploring acquisition opportunities in the oilfield services sector.”
Stallion Oilfield Holdings, Inc. is a leading privately owned energy service company that provides upstream, midstream, and industrial services to oil and gas exploration and production companies, drilling contractors, pipeline companies, and industrial companies across the United States, Gulf of Mexico, and certain international areas. Its clients include a wide range of organizations ranging from small oil and gas companies to large integrated E&P companies. With over 1,000 employees in 60 locations, the Company is one of the largest providers of surface equipment rentals and logistics in North America. As a pioneer in offering the total lifecycle service through a single provider, the Company distinguishes itself from competitors with a history of experience, scale, and ability to provide a single, comprehensive supply source. The range of critical upstream services include wellsite construction and board road access, OCTG and heavy equipment hauling to and from the wellsite, reliable mobile housing, water and sewer systems, trash containers, satellite systems, LTE & VSAT communications services, IT networks, solids control and dewatering systems, drilling and completion water delivery, fluid storage, transportation, and disposal, as well as wellsite remediation and restoration services. The midstream services include pipeline site clearing, gathering system construction, pad construction and access, temporary river crossing systems, board road access, and remediation and restoration services. The industrial services include fluid storage, surface equipment rentals, and blast resistant office accommodations. These services span the entire energy lifecycle of land, offshore and certain international hydrocarbon extraction areas providing location preparation, drilling, completion, production, decommissioning, pipeline systems and industrial services. To learn more, visit www.stallionoilfield.com.
About Centerbridge Partners, L.P.
Centerbridge Partners, L.P. is an alternative investment management firm employing a flexible approach across two complementary disciplines, private equity and credit, distressed strategies & special situations. As of September 2016, the Firm has approximately $29 billion in capital under management with offices in New York and London.
About Littlejohn & Co., LLC
Formed in 1996, Littlejohn & Co. this year is celebrating 20 years of serving its investors. Based in Greenwich, Connecticut, Littlejohn is a private equity firm investing in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach. The firm has over $4 billion under management. For more information, visit www.littlejohnllc.com.