Anvil Capital Partners has provided an $11 million loan to Fort Worth, Texas-based Vermilion Cliffs Partners, an exploration production and midstream company. The capital will be used to back an acquisition of producing assets in the Permian basin.
HOUSTON, Aug. 12, 2019 /PRNewswire/ — Anvil Capital Partners today announced final close of an $11,000,000 senior secured loan facility to Vermilion Cliffs Partners supporting the acquisition of producing assets in the Permian basin. This transaction closely follows a $33,500,000 senior secured facility provided to Samson Oil and Gas, a North Dakota operator and developer.
“We are excited to help our new customers meet their continued and increasing demand for stretch-RBL structures in this capital-constrained environment,” said James Avery, a partner with Anvil. “We look to solve the gap between bank lenders, which have largely pulled back from the micro and mid-cap market, and the typically more expensive mezzanine and preferred equity providers.”
The proceeds of the VCP loan was used to acquire a 30 well package with an ancillary development tranche for future drilling. The Samson transaction refinances a $24MM outstanding RBL with the remaining $9.5MM going towards balance sheet and asset development.
Rob Lindermanis, head of origination in Anvil’s Houston office said, “The opportunity to support both of these companies, as a long-term partner, in development of their underinvested assets is a positive one for all parties involved.”
“Samson’s undeveloped reserve base offers a tremendous opportunity for value creation in this price environment,” said David O’Driscoll senior partner and head of Anvil’s Houston office, “We were very happy to bring this deal over the finish line and allocate the right sized capital to allow Samson to reach its potential.”
Investing out of their initial $150,000,000 Anvil Energy Partners I fund, Anvil continues to seek strong sponsor partners with deep knowledge in the upstream E&P space who require acquisition, refinance and development capital for producing assets.
Noted Mr. Avery, “We believe our ability to stretch lend up to 100% of PDP PV10 makes us an extremely competitive alternative to other sources of capital while maintaining a comfortable pricing level for the Company tailoring the cost to fit production and cash-flows as we did with Samson and VCP.”
About Anvil Capital Partners
Anvil Capital Partners is a private credit special situations lending firm with offices in New York and Houston. The company invests within tightly bounded perimeters of value oriented opportunities backed by several blue-chip institutional investors. More information about Anvil is available on its website: http://www.anvilcp.com.