CB&I upsizes credit facility to $625M after Petrofac unit buy
What's the deal? CB&IDealroom has a profile for this one. Try Dealroom →, a Texas-based provider of storage and asset-management solutions, has closed a $625 million senior secured credit facility. The deal upsizes an existing $400 million facility and includes a $500 million revolving credit line plus a new $125 million syndicated Term Loan A.
Why now? The extra capacity replenishes cash used in CB&I's acquisition of Asset SolutionsDealroom has a profile for this one. Try Dealroom →, previously part of the Petrofac GroupDealroom has a profile for this one. Try Dealroom →. It also adds letter of credit capacity to back the company's growth plans.
Who's involved? CitibankDealroom has a profile for this one. Try Dealroom → led the syndication and served as administrative agent. New participants Goldman Sachs Bank USADealroom has a profile for this one. Try Dealroom → and Amegy Bank of TexasDealroom has a profile for this one. Try Dealroom → joined existing lenders including Truist SecuritiesDealroom has a profile for this one. Try Dealroom →, National Bank of CanadaDealroom has a profile for this one. Try Dealroom →, Webster BankDealroom has a profile for this one. Try Dealroom →, Texas Capital BankDealroom has a profile for this one. Try Dealroom →, Credit Agricole CIB, Wells Fargo, and J.P. Morgan.
By the numbers: The facility ranks among the largest debt rounds for US energy companies, sitting in the 95th percentile across all-time deals in the sector. The revolving line remained undrawn at closing, with CB&I holding no funded debt outstanding.
What they said: "This strong level of interest reflects a meaningful endorsement of CB&I's operating performance, strategic direction, and long-term growth prospects," said Michael Caldwell, senior vice president and chief financial officer. He added that the expansion enhances the company's capacity "to pursue and successfully execute projects."
The endgame: CB&I runs two global units — Storage Solutions, which builds tanks and terminals, and Asset Solutions, which handles operations, wells, and decommissioning services. The company, owned by a consortium led by Mason Capital ManagementDealroom has a profile for this one. Try Dealroom →, aims to extend asset life and grow across energy markets. The facility matures on December 4, 2028.
The signal: Lenders are backing energy infrastructure players with clean balance sheets and no drawn debt. CB&I's ability to attract two new banks and upsize its facility by more than half signals continued appetite for storage and asset-management assets.
Read more: StreetInsider
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