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Prospect Capital Provides $94MM for CP Energy Recapitalization

August 05, 2013, 07:49 AM
Filed Under: Transportation

Prospect Capital provided $94 million in senior secured loans and equity for the recapitalization of CP Energy Services, Inc. ("CP Energy"), an energy services company based in western Oklahoma.

CP Energy consists of CP Well Testing, Inc. ("CP Well"), a leading provider of flowback services, and Fluid Management Holdings, Inc. ("Fluid Management"), a premier operator of transport trucks and disposal wells. Both companies operate in the Anadarko basin of western Oklahoma and Texas. Senior managers of CP Well and Fluid Management made significant co-investments in CP Energy.

Based in Elk City, OK, CP Well provides services that include the provision of equipment and personnel to remove gas, fluids, sand, and proppants from the well bore after fracking and before beginning commercial production. CP Well continues to expand its equipment fleet to service the needs of its large oil and gas customers, including geographic expansion to other regions at the request of its key customers.

Based in Weatherford, Oklahoma, Fluid Management has six truck yard facilities and a growing portfolio of disposal well locations to meet the needs of its customers actively pursuing oil and gas drilling in the Fluid Management geographic footprint.

"CP Energy is led by a strong management team that we have gotten to know well over the past year through our involvement as a lender to CP Well," said Mark Hull, a Principal with Prospect Capital Management LLC. "The integration of flowback services with fluid hauling and disposal is highly compelling and expected to enhance the overall service offering to customers. Prospect is enthusiastic about supporting the management team in its investment and is pleased to provide Hastings Equity Partners, a valued sponsor relationship, with a monetization opportunity to support their fund raising."

Prospect has closed more than $1.7 billion of originations to date in the current 2013 calendar year. Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses.

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