Daily News: May 6, 2014

Prospect Capital Provides $61MM for Arctic Recap

Prospect Capital announced that Prospect has provided $61 million in senior secured debt and equity for the recapitalization of Arctic Energy Services, an oil and gas service company based in Glenrock, WY, and doing business as Arctic Oilfield Services.

Arctic is a leading provider of flow-back production well testing services, frac water transfer services and filtration equipment rentals. Arctic’s customers target the Bakken oil shale in the Williston Basin of North Dakota, oily sandstones of the Powder River Basin in Wyoming, and the Niobrara Shale of the Denver-Julesburg Basin in Colorado. Prospect is the controlling shareholder of Arctic.

“Arctic has an experienced management team that has demonstrated its ability to provide innovative and reliable solutions to its customers,” said Mark Hull, a principal with Prospect Capital Management. “Arctic has an impressive list of customers with significant capital budgets to focus on Arctic’s core regions, providing a tremendous growth opportunity for the company.”

“Prospect’s deep knowledge of the energy sector and ability to invest significant growth capital into the business provide the perfect fit for us,” said Shane Ailport, CEO of Arctic. “We look forward to growing the equipment fleet to service the sizeable demand we are witnessing from both existing and prospective customers.”

Prospect has closed more than $1.55 billion of originations to date in the current 2014 calendar year. Prospect closed more than $3.3 billion of originations in the twelve months ended March 31, 2014.