Revolving credit facility creates growth opportunity for Texas-based oil and gas drilling and trucking companies
DENVER – Jan. 16, 2007 - W. G. Nielsen & Co. today announced that it has secured a $37.5 million senior revolving credit facility for Adobe Drilling Services, Ltd. and Adobe Trucking, Inc., based in Odessa, Tex. This financing provides the additional working capital required for Adobe to expand its fleet of rigs and trucks to better serve its growing list of clients. W.G. Nielsen & Co., the Rocky Mountain region’s largest independently owned investment banking firm, specializes in negotiating mergers and acquisitions and structuring creative financing solutions for privately held businesses.
Adobe Drilling Services provides contract land drilling services and equipment to the oil and gas producing industry in the Permian Basin of West Texas and Southeast New Mexico. Adobe Trucking supports the drilling industry with a fleet of trucks, trailers and other equipment used to transport rigs for Adobe Drilling Services’ clients, as well as other exploration and production companies and rig contractors in the area.
“This transaction allows Adobe to capitalize on attractive conditions in the current lending market while obtaining capital for growth,” said Ron Barber, senior vice president at W.G. Nielsen & Co. PNC Business Credit led the syndicated transaction with participation by M&I Business Credit.
The high demand for drilling rigs and related services has created bottlenecks in the oil and gas exploration and production sector. In the past three years, Adobe Drilling Services has implemented an aggressive expansion program and has successfully placed eight high-quality drilling rigs into service, with a ninth rig scheduled to go into service in February 2007. Adobe Trucking was formed in 2005 to eliminate rig transportation delays and enhance the efficiency of Adobe Drilling Services.
“Our new financing gives Adobe the ability to take advantage of growth opportunities,” said Larry Bohannon, president of Adobe Drilling Services and Adobe Trucking. “We are now able to increase the number of drilling rigs and trucks as well as provide for additional equipment spares and inventory.”
About W.G. Nielsen & Co.
W.G. Nielsen & Co., the Rocky Mountain region’s largest independently owned investment banking firm, specializes in negotiating mergers and acquisitions for privately held businesses. W.G. Nielsen & Co. also provides its clients with creative finance solutions via structured and leveraged financing transactions. An NASD-licensed firm, W.G. Nielsen & Co. has a proven track record of maximizing its clients’ enterprise value, while remaining sensitive to preserving their unique culture and legacy. Since the firm’s inception in 1996, its seasoned professionals have completed transactions valued in excess of $4 billion. For more information, please visit www.wgnielsen.com.
About Adobe Drilling Services, Ltd. and Adobe Trucking, Inc.
Adobe Drilling Services, Ltd. and Adobe Trucking, Inc., based in Odessa, Texas, are related companies working within the oil and gas industry. Adobe Drilling Services provides contract land drilling services and equipment to the oil and gas producing industry in the Permian Basin of West Texas and Southeast New Mexico. The company began operations in May 2003 with the purchase and modification of one drilling rig. Through an aggressive expansion program, Adobe Drilling now has eight rigs working under day work contracts. Adobe Trucking was formed in April 2005 to support the drilling company with a fleet of trucks and trailers, in addition to forklifts, loaders and other equipment. Adobe Trucking’s equipment is used to transport, mobilize and demobilize rigs for Adobe Drilling Services’ clients, as well as other exploration and production companies and rig contractors in the area. For more information, please visit www.adobeservices.com.
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