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Goldman Sachs Bank, BofA Among Lenders in Vertex Energy Asset Acquisition

May 05, 2014, 07:09 AM
Filed Under: Environmental Services

Vertex Energy, Inc., an environmental services company that recycles industrial waste streams and off-specification commercial chemical products, announced today the first of two closings related to its previously announced acquisition of the assets of Omega Holdings Company, LLC and certain of its wholly-owned subsidiaries (“Omega”). A follow on closing is anticipated to take place during the third quarter of 2014.

The three assets in the first closing include Omega’s Marrero, Louisiana re-refinery, which produces vacuum gas oil (“VGO”), Omega’s Myrtle Grove complex in Belle Chaise, Louisiana and Golden State Lubricants Works, LLC (“Golden State”), a strategic blending and storage facility located in Bakersfield, California. The second closing, which is subject to certain closing conditions, will relate to Omega’s Bango, Nevada plant, which produces base lubricating oils, and must be fully restored and operational, meeting certain used motor oil proceeding run rates, prior to closing.

The purchase price paid at the first closing was $30.75MM in cash, 500,000 shares of Vertex’s common stock (currently valued at approximately $4 million), and the assumption of certain capital leases and other liabilities. Additionally, Vertex provided Omega a loan in the amount of $3.1 million.

Financing was provided by Goldman Sachs Bank USA (GS) and Bank of America (BAC). Craig-Hallum Capital Group LLC acted as the exclusive M&A advisor to Vertex in connection with the acquisition and has provided a fairness opinion to the Vertex Board of Directors in connection with the transaction. Along with Craig-Hallum Capital Group LLC, Sapphire Financial Group, LLC and Wunderlich Securities, Inc. provided financial advisory services in connection with the debt financing. Legal representation was provided by Reinhart Boerner Van Deuren s.c.

Vertex Energy, Inc. is a leading environmental services company that recycles industrial waste streams and off-specification commercial chemical products. Its primary focus is recycling used motor oil and other petroleum by-product streams.

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