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AloStar Business Credit Provides $6.5MM Facility to Armstrong Tool

September 04, 2013, 08:04 AM
Filed Under: Energy

AloStar Business Credit has provided a $6.5 million senior secured credit facility to Armstrong Tool, Inc., a provider of oil and gas field equipment for the oil and gas production industry. The secured credit facility includes a $4 million term loan, a $2 million revolver and a $500,000 CAPEX facility.

Launched in 1992, Armstrong Tool is currently headquartered in Van Buren, AK and offers oilfield tools and equipment as well as rental and operator services to the oil and gas exploration and production industry throughout Arkansas, Oklahoma and Illinois. Additionally, Armstrong services oil and gas exploration companies operating specifically in the Arkoma, Anadarko and Illinois Basins.

In each of these basins, Armstrong services oil and gas plays including the Mississippian Limestone, Granite Wash, Fayetteville Shale, New Albany Shale and the oil producing areas of southern Illinois. With a market share of more than 90 percent, Armstrong is also a leading provider of oilfield rental fishing tools and equipment throughout this part of the region. Additionally, Armstrong is the only national fishing tool rental company that purchases and refurbishes all its rental inventory.

“Armstrong Tool is uniquely positioned in its industry, and we look forward to providing financial support to help Armstrong identify its business goals and needs to grow the core of its business,” said Andy McGhee, president of AloStar Business Credit.

While Armstrong provides equipment and services for drilling new oil and gas wells, there is a much higher demand for the company’s experienced personnel and unique technologies.  With the use of Armstrong’s products and services and as drilling technologies improve, many dormant and marginal wells are being brought back online as expanded reserves that the oil and gas industry can tap into.

“AloStar is a group of people that knows exactly what they are doing, they stepped in and worked to understand our business,” said Larry Armstrong, CEO and president of Armstrong Tool, LLC. “AloStar believes in our plan and is a supportive partner.”

Armstrong Tool provides rental and fishing tool services to the mid-continent area with experienced service engineers.  Providing services in the oil industry since 1964, with the right equipment, the right people, in the right place at the right time.

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