Oil & Gas Financing

Exploration and production company secures capital for refinancing and growth

Prairie Provident Resources, Inc., headquartered in Calgary, Alberta, operates oil and gas properties in the Western Canadian Sedimentary Basin.

In May 2017, Prairie Provident approached Prudential Capital Group with a senior and junior debt financing need. The company sought to refinance its bank facility, given the instability of the banking market. They were also looking to gain incremental liquidity for accelerated development drilling and opportunistic acquisitions.

Prudential Capital worked directly with Prairie Provident’s management to tailor a transaction that met both of the company’s capital needs from a single capital provider. In October 2017, Prudential Capital and Prairie Provident closed on a one-stop financing transaction consisting of a three-year US$40 million multi-currency senior secured revolving credit facility and a four-year US$16 million senior unsecured subordinated term note.

Prairie Provident evaluated multiple proposals but ultimately chose to partner with Prudential Capital Group given the unique ability to offer a one-stop solution that fulfilled the entire capital need and the ability to grow with the company over time. This provided Prairie Provident with a higher certainty of execution in a challenging financing market and a streamlined transaction documentation process and closing. Prairie Provident also valued Prudential Capital’s long-term, relationship-focused approach to investing as well as the active investment history in the Calgary market.