Laney Directional Drilling receives US$ 43 million financing

CIT Group Inc., a leading provider of financing and advisory services to small businesses and middle market companies, has announced that it arranged a US$ 43 million senior secured credit facility for Laney Directional drilling, Co., a portfolio company of Chart Capital Partners. The financing will be used to refinance an existing facility and provide additional funds for capital expenditures for the company.

“This transaction highlights CIT’s ability to structure deals that meet the unique needs of our clients in the energy services sector,” said Fred Aldin, Senior Director, CIT Sponsor Finance. "Based on our energy industry expertise and dialogue with our client, we tailored a financing appropriate for the current growth cycle of the company. We look forward to continuing to build on our successful relationships with Chart Capital Partners and Laney Directional Drilling."

Mauricio Perini, Chief financial Officer of Laney Directional Drilling said, "The pipeline construction and maintenance industry is poised for a significant and long cycle of build-out driven by dramatic growth in production of emerging unconventional shale gas, shale liquids and Canadian oil-sands production. Tying this increasing production into the existing pipeline network will continue to necessitate a significant amount of new pipeline infrastructure as well as repair work on existing aged infrastructure. This financing provides Laney with the necessary funds to capitalise on the heavy investment in pipeline construction that will further fuel the growth in our industry. CIT's deep industry expertise was evident throughout the various stages of the transaction. We look forward to growing this relationship."

David Collier, Managing Director of Chart Capital Partners, said, "Laney is widely recognised as a pioneer in the horizontal directional drilling market and a technology leader in advancing underground construction of pipeline crossings. The financing and expertise CIT brought to this transaction helps position Laney to grow its fleet and suite of services to continue to lead an expanding market with tremendous long-term fundamentals."

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/05032014/laney_directional_drilling_receives_us_43_million_financing/