Whitehorn Merchant Capital Inc. assisted Superior Coring Systems, Inc. (“Superior”) to raise a $25.0 million acquisition loan facility used to complete the acquisition of the hybrid drilling division of Essential Energy Services Ltd. (“Essential”). The acquisition marks Superior’s entry into the drilling sector. Management expects to leverage its existing coring package to present exploration and production companies with a more comprehensive solution.
Superior used the funds to acquire five hybrid coil tubing drilling rigs from Essential for $16.75 million. The balance of funds raised is intended for working capital purposes and potential additional acquisition opportunities. Whitehorn worked with Superior on both the acquisition and financing transactions.
- Minimized management’s time commitment and distraction by overseeing two simultaneous transactions;
- Maintained a discreet, expedient and controlled process on a highly confidential basis, including the negotiation of business terms, development of complex and dynamic financial models, and completion of due diligence on the acquisition;
- Sourced multiple term sheets and reviewed multiple financial options to successfully complete the transactions; Managed the financial due diligence process and the loan agreement negotiations on behalf of management; and
- Assisted management and legal counsel in negotiating the asset purchase agreement with Essential; and Assisted Superior with post-closing reporting to lender.
Contact Whitehorn today for help with your acquisition or financing transaction.