Nova Compression, a provider of contract compression infrastructure, closed a $105 million structured equity commitment from OIC. This investment is complemented by a new asset-based loan (ABL) facility led by J.P. Morgan, with participation from Bank OZK, First Citizens Bank and Sunflower Bank, and the continued support of Nova’s existing shareholders.
“This transaction marks an inflection point for Nova,” Jonathan Mitchell, CEO of Nova Compression, said. “OIC’s investment gives us the financial resources we need to fully capitalize on the opportunities we see in the compression market, while the J.P. Morgan-led credit facility provides us flexibility to scale our mixed fleet strategy. With their support, and the support of our longtime partners, we will continue to deliver world-class service to our customers across multiple horsepower ranges, with both natural gas and electric units. All of our stakeholders and customers will benefit from the growth of our company, reinforcing our commitment to provide the highest quality work environment for our employees, while deepening our customer relationships by growing with them.”
Nova worked closely with OIC to design a structured equity solution that will enable the company to grow on multiple fronts while serving its existing customer base. With this new capital in place, Nova plans to grow its diversified natural gas and electric engine fleet, expand in both existing and new geographies and opportunistically pursue accretive acquisitions.
“OIC is excited to partner with Nova as they enter this new phase of growth,” Chris Leary, investment partner and head of infra equity at OIC, said. “Nova is an already successful platform with a diverse range of assets that provide critical compression services to leading energy companies. The company is in a strong position to unlock growth in existing and new geographies. We are excited to work with the entire Nova team and its existing investors to execute on the company’s long-term strategy.”
Moelis & Company served as exclusive placement agent and Foley & Lardner served as legal advisor to Nova Compression. Vinson & Elkins served as legal advisor to OIC.
