Stonebriar Commercial Finance closed a $180 million senior secured term loan with a low-cost producer of sand to the Permian Basin. This facility represents Stonebriar’s fifth closed transaction with the borrower and its affiliates, which used the loan proceeds to refinance existing indebtedness and for general corporate purposes.
The loan is secured by all fixed assets of the borrower, including sand plants and related equipment, real property and reserves.
“This closing is representative of Stonebriar’s ongoing commitment to strategically and selectively deploy capital into the U.S. onshore oil and gas industry,” Reagan Rorschach, managing director at Stonebriar Commercial Finance, said. “As the Permian Basin continues to consolidate and producers seek efficiencies throughout the supply chain, our borrower is well positioned for success by the strength of its management team, the unique operational and cost advantages it enjoys and the consistent quality of the sand it reliably produces for its clients.”
“As the largest independent commercial finance company in the U.S., Stonebriar uniquely possesses the balance sheet and resources to structure, underwrite, document and fund transactions of this complexity and scale,” Kyle Parks, head of direct originations for Stonebriar Commercial Finance, said. “When the fundamentals of proven management, essential-use real and personal property assets in desired geographies and defensible market leading positions serving viable off-takers exist, as they do here, Stonebriar consistently executes on behalf of its valued clients.”