Stallion Oilfield Holdings, Inc. Announces New Financing

HOUSTON--(BUSINESS WIRE)--Stallion Oilfield Holdings, Inc. (the “Company”) announces today that it is seeking commitments for a new senior secured term loan in an aggregate principal amount of up to $500,000,000 (the “Term Loan”) and an increase of commitments under its existing asset-based loan facility (“ABL”) from $50 million to $75 million. The proceeds from the Term Loan are intended to be used to redeem the remaining $134 million of the Company’s senior secured notes due 2015, fund a portion of an approximately $385 million dividend to the Company’s stockholders, and fund transaction costs and for other corporate purposes.

Credit Suisse will act as sole bookrunner and sole lead arranger for the Term Loan and Bank of America, N.A. will continue to act as administrative agent under the ABL.

The Term Loan will be guaranteed by all of the Company’s domestic subsidiaries and be secured by certain assets of the Company and the Company’s domestic subsidiaries. The Term Loan also is not expected to carry any financial maintenance covenants. The increase in the available amount under the ABL would be effected as an amendment to the Company’s ABL. There can be no assurance that the Company will be successful in obtaining the Term Loan or the amendment to the ABL on reasonably acceptable terms, or at all.

Cautionary Note Regarding Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the proposed new term loan and the intended use of proceeds therefrom. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Some of these factors include market conditions; ability to obtain lender consent; our substantial indebtedness; our ability to service our outstanding indebtedness and the impact such indebtedness may have on the way we operate our business; the loss of one or more of our significant customers or strategic relationships; general economic and business conditions and any downturns in the oilfield service industry and our competitive environment.

Stallion Oilfield Holdings, Inc. and its subsidiaries provide a wide range of wellsite support, completion, production and logistics services to oil and gas exploration and production companies, drilling contractors, and other service companies throughout the United States. The Company’s comprehensive suite of services includes workforce accommodations, production and fluid logistics services, surface equipment rental, wellsite construction, solids control services, and wellsite communications. Stallion’s operations cover the most active and prolific oil and natural gas basins in the U.S., including South Texas (Eagle Ford Shale), Rocky Mountain Regions (Niobrara/Bakken Shale/Piceance), Permian Basin (Wolfcamp/Avalon/Bone Spring Shales), the Mid-Continent (Mississippi Lime/Woodford Cana/Granite Wash), ArkLaTex (Haynesville Shale), Marcellus/Utica Shales, North Texas (Barnett Shale), the Gulf Coast (Tuscaloosa Marine Shale) including the inland waters of Louisiana, offshore Texas and Louisiana Gulf Coast, Prudhoe Bay (Alaska) and, to a lesser extent, certain international waters.