Prospect Capital provided a $21.5 million senior secured loan to support Hasting Equity’s acquisition of CP Well Testing,, a provider of flowback services to oil and gas companies operating in Western Oklahoma and the Texas Panhandle.
Based in Elk City, Oklahoma, CP's services include providing equipment and personnel to remove gas, fluids, sand, and proppants from the well bore after fracking and before commercial production begins.
"CP provides services in a region with compelling drilling economics to well-capitalized customers with robust development plans, and Prospect is pleased to support Hastings as an experienced investor in oilfield service companies," said Mark Hull, a Principal of Prospect Capital Management.
Prospect has closed more than $1.6 billion of originations to date in the current 2012 calendar year. Prospect's advanced investment pipeline aggregates more than $600 million of potential opportunities.
Hastings Equity Partners is a private equity firm focused on investing in lower-middle market businesses in the energy sector.
Prospect Capital Corporation is a closed-end investment company that lends to and invests in private and microcap public businesses.