CIT Arranges $43MM Financing for Laney Directional Drilling
CIT Group announced that it arranged a $43 million senior secured credit facility for Laney Directional Drilling Co., a portfolio company of Chart Capital Partners. The financing will be used to refinance an existing facility and provide additional funds for capital expenditures for the company.
CIT Corporate Finance served as sole lead arranger, sole bookrunner and administrative agent for the transaction. Financing was provided by CIT Bank. Terms of the transaction were not disclosed.
“This transaction highlights CIT’s ability to structure deals that meet the unique needs of our clients in the energy services sector,” said Fred Aldin, senior director, CIT Sponsor Finance. “Based on our energy industry expertise and dialogue with our client, we tailored a financing appropriate for the current growth cycle of the company. We look forward to continuing to build on our successful relationships with Chart Capital Partners and Laney Directional Drilling.”
Mauricio Perini, CFO of Laney Directional Drilling, said, “The pipeline construction and maintenance industry is poised for a significant and long cycle of build-out driven by dramatic growth in production of emerging unconventional shale gas, shale liquids and Canadian oil-sands production. Tying this increasing production into the existing pipeline network will continue to necessitate a significant amount of new pipeline infrastructure as well as repair work on existing aged infrastructure. This financing provides Laney with the necessary funds to capitalize on the heavy investment in pipeline construction that will further fuel the growth in our industry. CIT’s deep industry expertise was evident throughout the various stages of the transaction. We look forward to growing this relationship.”
David Collier, managing director of Chart Capital Partners, said, “Laney is widely recognized as a pioneer in the horizontal directional drilling market and a technology leader in advancing underground construction of pipeline crossings. The financing and expertise CIT brought to this transaction helps position Laney to grow its fleet and suite of services to continue to lead an expanding market with tremendous long-term fundamentals.”
Laney Directional Drilling Co. is one of the largest independent Horizontal Directional Drilling (HDD) companies in the world.