Daily News: March 2, 2018

CapX Provides Term Loan, Lease Line to Adler Hot Oil


CapX Partners added to its previous Fund IV investment in Adler Hot Oil Service by providing a senior secured term loan and lease line of credit totaling $2.75 million to the company.

This is the second round of financing provided to Adler by CapX Partners, with the firm previously committing $2 million in 2015.

Vernal, UT-based Adler is an oilfield services company providing heating services for oil and gas well sites. The company operates a fleet of truck-based heating units that serve 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 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 Capital Mezzanine provides subordinated debt and non-control equity to businesses in a variety of industries across the U.S.