CIT Group announced that it served as joint lead arranger in a $65 million senior secured credit facility to support Maxim Partners’ and Falcon Investment Advisors’ acquisition of Laney Directional Drilling, the largest independent horizontal directional drilling (HDD) company in the world. HDD is a steerable trenchless method of installing underground pipes, conduits and cables with minimal impact on the surrounding area.
CIT Corporate Finance served as joint lead arranger and syndication agent for the transaction. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
“We’re pleased to have financed Maxim-Falcon’s acquisition of Laney Directional Drilling,” said Jeff Kilrea, co-head and managing director, CIT Sponsor Finance. “We have a strong relationship with Laney having provided $43 million in financing last year. We’re pleased to participate in the continued growth of this company.”
Jay Baldinelli, managing director of CIT Sponsor Finance, added, “Maxim-Falcon has acquired a company that is at the forefront of horizontal directional drilling and we wish them continued success in the future as well look to further build on these relationships.”
Ryan Franco, a managing partner at Maxim Partners, said, “Maxim and Falcon are excited to partner with existing management to support the company’s strategic vision of becoming North America’s preferred supplier of HDD services for energy infrastructure. The CIT team demonstrated deep industry experience and financial expertise in getting this transaction closed smoothly and efficiently.”
Sven Grasshoff, a principal at Falcon Investment Advisors, said, “We’re pleased to participate in Laney’s continued growth. The company is the leading independent HDD service provider in an industry with strong growth trends. The financing and expertise CIT brought to this transaction helps position Laney to continue growing its business. We look forward to closing more deals with CIT in the future.”
Kevin Fox, CEO of Laney Directional Drilling, said, “Laney is pleased to announce this acquisition, which represents a great opportunity for both our employees and the company to continue driving growth and offer best in class service to our customers. We look forward to partnering with Maxim and Falcon to significantly increase our portfolio of HDD capabilities as well as extend the Company’s geographic reach and we are pleased to once again work with CIT.”