UBS has launched syndication of a $215 million senior secured credit facility for Stallion Oilfield Services. The provider of rentals and services for the oil and gas industry will use the loans to fund recent acquisitions. The deal comprises a five-year, $75 million revolver and a six-year, $160 million term loan. Both tranches are priced at LIBOR plus 3 1/4%.
Over the course of the last six months, the company has made several purchases in an attempt to expand its area of operations, targeting companies that assist in drilling operations in the major basins throughout the U.S. On Sept. 12, it acquired GL Trucking and Rental, a company which provides support for drilling operations in the Williston Basin area in North Dakota. On Jan.19, the company acquired Trail Blazer Hot Shot, a surface equipment services provider, which expanded Stallion's operations into the major Oklahoma basins.
Stallion now has operations in the Gulf Coast, south Texas, the Arkansas, Louisiana and Texas border area, the Fort Worth Basin in eastern Texas, the Permian Basin in western Texas, the Anadarko Basin of western Oklahoma, the Rocky Mountains Basin and the recently acquired businesses in the Williston and Oklahoma basins. Calls to David Schorlemer, cfo at Stallion, were not returned. A spokesman declined comment.
One investor noted the ambition that Stallion has been showing lately. "The deal itself looks interesting," he noted. "They [Stallion] have been very aggressive in the past year or so in their acquisitions and expansion. It seems like every three or four months they have an acquisition that greatly increases their sphere of influence; they are one to keep an eye on."