Houlihan Lokey Advises Gravity Oilfield Services
Houlihan Lokey is pleased to announce the closing of a $225 million financing for Gravity Oilfield Services Inc. (Gravity), a portfolio company of Clearlake Capital Group, L.P. (Clearlake). The $225 million financing included a $75 million amended ABL revolver and a $150 million term loan facility, consisting of a $120 million funded term loan and a $30 million delayed draw term loan. Proceeds were used to finance the acquisition of McKenzie Energy Partners, LLC (McKenzie), refinance existing indebtedness, provide additional liquidity for growth capital expenditures, and pay related fees and expenses. The transaction closed on June 19, 2018.
Gravity is a growth-oriented, Permian-focused provider of a wide range of oilfield services to U.S. onshore oil and natural gas exploration and production companies, including water logistics and infrastructure solutions, portable power generation and equipment rentals, and specialty production chemicals. Gravity has significant coverage density in the Permian Basin and also benefits from a national footprint supported by facilities, operations, and management personnel in several key domestic resource plays, including the Eagle Ford Shale, SCOOP/STACK, Williston Basin, DJ Basin, Marcellus Shale, and Haynesville Shale, among others.
McKenzie provides reliable, contracted midstream-based water management solutions for some of the most active operators in the Bakken through a network of produced water gathering pipelines and water disposal wells situated on core acreage dedications.
Clearlake is a leading private investment firm founded in 2006. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are industrials and energy; software and technology-enabled services; and consumer. Clearlake has managed over $7 billion of institutional capital since inception, and its senior investment principals have led or co-led over 100 investments.
Houlihan Lokey served as exclusive placement agent for Gravity, assisting the company in arranging, structuring, and negotiating the financing in an expedited time frame.
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