Prospect Capital Provides $94.0 Million for Recapitalization of CP Energy Services
NEW YORK, NY -- (Marketwired) -- 08/05/13 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided $94.0 million in senior secured loans and equity for the recapitalization of CP Energy Services, Inc. ("CP Energy"), an energy services company based in western Oklahoma.
CP Energy consists of CP Well Testing, Inc. ("CP Well"), a leading provider of flowback services, and Fluid Management Holdings, Inc. ("Fluid Management"), 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, Oklahoma, 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, Oklahoma, 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," said Mark Hull, a Principal with Prospect Capital Management LLC. "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."
"We are excited to work with Prospect Capital (PSEC) as a large financing provider with a long history of investing in the energy sector," said Craig Wright, CEO of CP Energy. "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."
Prospect has closed more than $1.7 billion of originations to date in the current 2013 calendar year. Prospect closed more than $3.0 billion of originations in the twelve months ended June 30, 2013.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
Source: Prospect Capital Corporation