VERNAL, Utah & STAMFORD, Conn.--(BUSINESS WIRE)--GE Energy Financial Services announced today that it served as lead arranger and sole book runner for a $155 million senior secured credit facility for Dalbo Holdings, Inc., a provider of water-based fluid transportation, water storage tank rental and fluid disposal services to oil and gas exploration sites in northeastern Utah and northwestern Colorado.
Dalbo will use proceeds from the facility to complete the acquisitions of Dawn Trucking Corp. and BHS, Inc. These acquisitions enable Dalbo to offer heavy hauling trucking services as well as expand to oil and gas fields in New Mexico and Wyoming. Dawn Trucking is a provider of frac tank rental and hauling services, as well as heavy hauling truck services, in New Mexico and Colorado. BHS is an equipment rental company supplying water storage tanks and other oilfield services equipment in Wyoming.
Dalbo, based in Vernal, Utah, is a portfolio company of Lincolnshire Management, Inc., a private equity firm based in New York. GE Energy Financial Services provided acquisition financing to fund Lincolnshire's purchase of Dalbo in November 2005, establishing an initial $65 million acquisition and working capital facility. Proceeds from the new credit facility will be used not only for the acquisitions of Dawn Trucking and BHS but also to refinance the initial working capital facility, providing Dalbo with added financial flexibility.
"In oilfield services, customers are increasingly migrating to providers that can offer a one-stop shopping experience," said Chuck Mills, Director of Lincolnshire Management, Inc.. "The acquisitions of Dawn Trucking and BHS enable Dalbo to offer customers more extensive services, bringing them the best of each company with just one call. GE Energy Financial Services provided Dalbo with the financing needed to fund these acquisitions under a tight timeframe, enabling us to better serve our customers' needs."
Tony Shizari, Managing Director and leader of GE Energy Financial Services' debt finance group, stated: "This transaction is a demonstration of GE Energy Financial Services' strength in harnessing the full resources of GE to provide debt financing for customers throughout the energy sector. This financing not only helped Lincolnshire grow by acquiring Dalbo, but is enabling Dalbo to grow into a larger, more diversified company."
With more than 70 dedicated professionals, GE Energy Financials Services' debt finance group provides a full complement of debt products and services for the energy and water industries, including structured, project and acquisition debt, equipment leases and loans, revolving credit facilities, fleet financing and corporate loans. Its GE Capital Markets affiliate provides arranging and syndication for many of these facilities.
About GE Energy Financial Services
GE Energy Financial Services' 300 experts invest globally with a long-term view, across the capital spectrum and the energy and water industries, to help their customers and GE grow. With $13 billion in assets, GE Energy Financial Services, based in Stamford, Connecticut, invests more than $5 billion annually in two of the world's most capital-intensive industries, energy and water. More information: www.geenergyfinancialservices.com.
About GE
GE (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
Contacts
GE Energy Financial Services
Andy Katell, 203-961-5773
Britta Kons
GE Healthcare Global Services
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1-203-400-1892