CapX Partners Announces Second Round of Financing to Leading Oilfield Services Company

By: Peter W. Washington :: February 28, 2018

CapX Partners added to its previous Fund IV investment in Adler Hot Oil Service, LLC (Adler) by providing a senior secured term loan and lease line of credit totaling $2.75mm to the company. This is the second round of financing provided to Adler by CapX Partners, with the firm previously committing $2.0mm in 2015. Adler is a leading oilfield services company providing heating services for oil and gas well sites. Headquartered in Vernal, Utah, the company operates a fleet of truck-based heating units that serve top-tier oil & gas companies operating in the Niobrara and Bakken basins. Heating services are employed to enhance the effectiveness of frac drilling of new wells and for the routine maintenance of producing wells.

When Adler’s financial sponsor Spell Capital Mezzanine Partners (Spell) sought a balance sheet refinance, the investment fund called on CapX Partners. Spell’s primary refinance motive was to reposition Adler for future growth. CapX provided Adler more execution runway via extended loan maturity and a customized amortization schedule, which aligned with the seasonal cash flows of Adler’s business. CapX Partners managed the refinance of Adler’s loan quickly and efficiently,” stated Stacy Harmsen, Managing Director, Spell Capital. “We are pleased to have CapX on our team, supporting Adler’s continued growth.”

Spell selected CapX because of its existing relationship and knowledge of Adler, CapX’s ability to move quickly, and certainty of close. “Spell’s investment and stewardship of Adler has been impressive, and we’re pleased to deliver continued support to Spell and its portfolio company,” stated Peter W. Washington, Director, CapX Partners.

Peter W. Washington, Director

Peter joined CapX Partners in June 2009 and is responsible for managing transaction underwriting and portfolio management.

Prior to CapX, he served in the commercial lending and institutional sales divisions at the Northern Trust Company. Before working at Northern Trust, Peter served as a High Grade/High Yield analyst for Banc of America Securities in New York, NY. Peter graduated magna cum laude from Florida A&M University with a B.A. in Business Administration and received his...