AloStar Provides $6.5MM to Armstrong Tool
AloStar Business Credit provided a $6.5 million senior secured credit facility to Armstrong Tool. The secured credit facility includes a $4 million term loan, a $2 million revolver and a $500,000 capex facility.
Launched in 1992, Van Buren, AR-based Armstrong Tool offers oilfield tools and equipment as well as rental and operator services to the oil and gas exploration and production industry throughout Arkansas, Oklahoma and Illinois. Additionally, Armstrong services oil and gas exploration companies operating specifically in the Arkoma, Anadarko and Illinois Basins.
“Armstrong Tool is uniquely positioned in its industry, and we look forward to providing financial support to help Armstrong identify its business goals and needs to grow the core of its business,” said Andy McGhee, president of AloStar Business Credit.
While Armstrong provides equipment and services for drilling new oil and gas wells, there is a much higher demand for the company’s experienced personnel and unique technologies. With the use of Armstrong’s products and services and as drilling technologies improve, many dormant and marginal wells are being brought back online as expanded reserves that the oil and gas industry can tap into.
Armstrong Tool provides rental and fishing tool services to the mid-continent area with experienced service engineers.