Daily News: April 10, 2012

Capital One Closes $25 Million Facility for Directional Rentals

Capital One Bank announced it provided a five-year $25 million senior secured credit facility to Directional Rentals, Inc., a privately held oilfield services company that was recently acquired by Hicks Equity Partners, a Dallas-based investment firm specializing in middle-market companies, and senior management. The facility will be used to fund Directional Rentals’ future growth plans, including its expansion into new locations and rental tools.

“The Capital One Bank team exhibited a deep understanding of our business and key industry trends, which makes the bank an invaluable partner as we look to aggressively expand in order to better meet our customers’ needs,” explained, Wes DeHaven, Directional Rentals’ CFO and COO.

Directional Rentals rents tools used for onshore and offshore horizontal and directional drilling. The company, which operates facilities in Houston, TX, Casper, WY, Lafayette, LA, Oklahoma City, OK. and Bakersfield, CA, maintains a wide portfolio of rental equipment, consisting principally of drill collars, stabilizers and sub-assemblies in a range of sizes made from non-magnetic, nickel-based specialty metal and basic carbon steel.

“We are excited to establish this new relationship with Hicks Equity Partners and Directional Rentals,” said Mike Ehlert, regional manager and senior vice president at Capital One Bank. “We look forward to collaborating with Directional Rentals as horizontal drilling continues to present new opportunities for the company and for the oil and gas industry as a whole.”