Prospect BDC backs oil and gas firm

US-listed BDC Prospect Capital provides a $61m debt and equity package to oil and gas firm Arctic Energy Services.

US business development company (BDC) Prospect Capital Corporation has provided $61 million in senior secured debt and equity for the recapitalisation of Arctic Energy Services, an oil and gas service company, as announced in a statement Tuesday.

Prospect is the controlling shareholder in the Wyoming-based Arctic, which provides flow-back production well testing services, frack water transfer services and filtration equipment rentals. Arctic's customers target the Bakken oil shale in the Williston Basin of North Dakota, oily sandstones of the Powder River Powder River Basin in Wyoming and the Niobrara Shale of the Denver-Julesburg Basin in Colorado.

Shane Ailport, chief executive of Arctic said: “We look forward to growing the equipment fleet to service the sizable demand we are witnessing from both existing and prospective customers.”

Mark Hull, a principal with Prospect Capital Management said: “Arctic has an impressive list of customers with significant capital budgets to focus on Arctic’s core regions, providing a tremendous growth opportunity for the company.”

Prospect has closed more than $1.55 billion of originations to date in 2014 and more than $3.3 billion of originations in the twelve months ended 31 March 2014.