Transcript FBCP - Oilfield Finance Company

Oilfield Finance Co.
Asset Based Lenders to Oilfield Service Providers
“Debt Financing for High Growth Opportunities”
•
Oilfield Finance Co (“OFC”) is an asset-based lender that
specializes in providing loans to fund growth oriented
investments for businesses operating in shale oil and gas fields.
OFC is a leading source of asset-based lending for rapidly growing
small to middle-market companies with credit requirements of
$250,000 to over $10,000,000.
•
We are managed by two seasoned professionals who understand
your business and have worked with many companies in similar
circumstances. We pride ourselves on making decisions quickly
so your business dealings are not delayed.
•
We are honest, efficient and creative. If you have a high quality
but unique opportunity that requires capital, we can probably
craft a solution that works for you.
Oilfield Finance Co
Oilfield Finance Co.
Ideal Situations
•
We provide capital to businesses that have stellar
reputations, positive cash flow and operate in a market with
strong underlying fundamentals.
•
We target owners willing to consider a hybrid debt
instrument instead of selling off a large portion of their
equity to raise capital.
•
We provide term loans to fund capital expenditures and/or
to provide financing for rapid growth.
•
We target loan opportunities of $250,000 to $10,000,000
Oilfield Finance Co
Oilfield Finance Co.
Typical Deal Structure
•
Capital provided as a term loan – usually three years in
duration.
•
Loan agreements have standard affirmative and negative
financial covenants
•
Interest paid quarterly in arrears
•
Principal balance amortizes during life of the loan –
structured so that a percentage of free cash flow is utilized
for loan repayment
•
OFC receives warrant participation for some portion of the
common equity
Oilfield Finance Co
Oilfield Finance Co.
Owners Value Comparison (Two Year Perspective)
With 3rd Party
With OFC
Equity
Debt/Equity
EBITDA before New Capital
$
2,000,000 $
2,000,000
Increase in EBITDA from New Capital
$
1,000,000 $
1,000,000
Total EBITDA
EBITDA Sales Multiple
$
3,000,000 $
5.0
3,000,000
5.0
Enterprise Value
add: Cash (Two Years of EBITDA)
(less) Interest on Add'l OFC Debt
(less) Debt
$
$
15,000,000 $
6,000,000 $
$
(1,000,000) $
15,000,000
6,000,000
(720,000)
(3,000,000)
Equity Value
Ownership %
Equity Value to Current Owners
add: Distribution to Owners
$
$
$
20,000,000 $
25%
5,000,000 $
6,250,000 $
17,280,000
90%
15,552,000
-
Total Value to Owners
$
11,250,000 $
15,552,000
$
4,302,000
38%
OFC Advantage - Dollars
OFC Advantage - Percent Improvement in Value
$
Oilfield Finance Co
Value Proposition
The example to the left illustrates the
benefit of using OFC’s hybrid debt
financing in lieu of selling off 75%
equity in your business.
Download the Benefit
Calculator to Analyze
Your Own Scenario
Oilfield Finance Co.
Managing Partners
Chris Baltes:
•
Mr. Baltes has 17 years of experience in lending, investing, and growth
oriented operations management. Prior to being a managing partner of OFC,
Mr. Baltes was a partner at a top quartile private equity firm. Mr. Baltes has
had direct and primary responsibility for investments and loans that have
created in excess of $480 million of realized investor returns or 5.6X invested
capital. He has served on the boards of over 15 companies.
Paul Fischer
•
Mr. Fischer has over 25 years of experience in finance, accounting, IT and
manufacturing operations. Prior to being a managing partner of OFC, Mr.
Fischer was the CFO of Amsted Industries, a $3.0 billion diversified
manufacturing firm. During his four year tenure as CFO, the equity value of
Amsted improved from $300 million to $3 billion. He has served on the board
of Varlen Corporation, Patil Rail and AllParts Medical.
Oilfield Finance Co
Oilfield Finance Co.
Contact Us
2150 Rapid Creek Rd.
Alta, WY 83414
[email protected]
917-544-4028
[email protected]
312-805-7835
Oilfield Finance Co