Texas International Energy Partners Inc (TxIEP), a wholly owned subsidiary of Ecofin Energy Resources Plc (EER), has successfully secured its first commercial debt facility.
BNP Paribas, as sole lead arranger and bookrunner of the transaction, has agreed to provide a USD100 million credit line to TxIEP, which was formed through EER last year to acquire and develop shale gas properties in the US. Under the terms of the facility, TxIEP has the option to immediately draw down USD20 million of the loan, which will be used to bring more wells into production and finance future complimentary bolt-on acquisitions.
The transaction, which was signed last week, is a strong endorsement from one of the world’s leading financial institutions of TxIEP’s business model and long term growth potential.
Dr Chris Rowland of Ecofin, and Chairman of TxIEP, says: “We are delighted with BNP Paribas’ capital commitment to our business, which is not only indicative of its confidence in TxIEP’s growth prospects but the high quality of the business’ assets as well. We have come a long way since inception less than a year ago and with the support of BNP Paribas we are now in stronger position to continue to grow and fully realise our ambitions for the business.”
TxIEP is wholly owned subsidiary of EER, which in turn is currently 97% owned by Ecofin’s flagship UK investment trust, Ecofin Water & Power Opportunities Plc, and its Texas-based senior management team.