NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE:CIT) cit.com, a leading provider of financing and advisory services to small businesses and middle market companies, today announced that it arranged a $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.
CIT Corporate Finance served as Sole Lead Arranger, Sole Bookrunner and Administrative Agent for the transaction. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
“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 capitalize 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 recognized 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.”
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About Laney Directional Drilling
Laney Directional Drilling, Co (“Laney” or “Company”) is the largest independent Horizontal Directional Drilling (“HDD”) company in the world and the only U.S. HDD company providing integrated engineering, design and construction services. Laney specializes in servicing pipeline companies with complex, challenging or large scale HDD requirements. Located in Houston, TX, Laney directionally drills for the purpose of installing infrastructure such as oil and gas pipelines and occasional telecommunications conduits. Other applications of directional drilling include water lines, sewer lines and environmental remediation casings. HDD is used for crossing waterways, roadways, shore approaches, congested areas, environmentally sensitive areas, and areas where other methods are more costly or not possible. laneydrilling.com
About Chart Capital Partners
Chart Capital Partners is a private equity investment firm that specializes in leverage buyouts and growth financings with smaller middle market companies (e.g., total enterprise value less than $250 million) based in the United States. For over 10 years, Chart Capital Partners has pursued a consistent approach based on partnering with superior executives where its experience, relationships and capital helps to create long term value through growth strategies and operational improvements. chartcapital.com
About CIT Corporate Finance
Corporate Finance provides lending, leasing and other financial and advisory services to the middle market with a focus on specific industries, including: Aerospace & Defense, Business Services, Communications, Energy, Entertainment, Gaming, Healthcare, Industrials, Information Services & Technology, Restaurants, Retail, and Sports & Media. cit.com/corporatefinance
About CIT Bank
Founded in 2000, CIT Bank (Member FDIC, Equal Housing Lender) is the U.S. commercial bank subsidiary of CIT Group Inc. (NYSE:CIT). It provides lending and leasing to the small business, middle market and transportation sectors. Through its Internet bank, BankOnCIT.com, CIT Bank offers a suite of savings options designed to help customers achieve a range of financial goals. As of December 31, 2013, it had more than $12 billion of deposits and over $16 billion of assets. cit.com/CITBank
Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT operates CIT Bank (Member FDIC), its primary bank subsidiary, which, through its Internet bank BankOnCIT.com, offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com