All American Oil & Gas (All American), a private independent oil and gas exploration and production company, entered into a $50 million second lien term loan facility with AB Private Credit Investors (AB-PCI), the middle market direct lending platform of AllianceBernstein (AB), to refinance debt and fund reserve development in the Kern River Oil Field.

San Antonio, TX-based All American, through its upstream entity Kern River Holdings, is the largest private oil and gas producer in the Kern River Field. Founded in 2004, All American has grown production to more than 2,000 barrels of oil a day through their low cost enhanced oil recovery steam flood program.

“The second lien financing by AB-PCI provides All American with the capital to continue to fund our development in the Kern River Field,” said Robert G. Morris, chairman of All American Oil & Gas. He added, “We are pleased to partner with the AB-PCI team, who were able to use their expertise to understand the nuances of our operations and move quickly to tailor a financing solution suitable to our needs.”

“We are excited to work with All American’s management team, which has a strong track record of delivering production growth and cash flow in the exploration and production space,” said Brent Humphries, president of AB Private Credit Investors. He added, “This transaction is a great example of the flexible capital the AB PCI platform can bring to the Energy market.”

Patrick Gimlett, a director who leads AB-PCI’s origination efforts in Energy added, “Upstream Oil & Gas is a key area of expertise for us and we are excited to have brought our industry knowledge, structuring expertise and flexibility to bear in this transaction.”

Cappello Global acted as exclusive financial advisor to All American Oil & Gas and Kern River Holdings. Jones Day and Vinson & Elkins served as legal advisors on the transaction.