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Tall Oak Subsidiary Lands $100MM Equity Deal

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   |    Friday,October 17,2014

Tall Oak Midstream, LLC reported that its subsidiary, TOMPC, LLC, has secured a $100 million senior credit facility that can be expanded to $150 million.

Formed in early 2014, Tall Oak is an independent midstream company focused on providing midstream services to oil and gas producers in the Mid-Continent. Together with $400 million in prior private equity commitments from EnCap Flatrock Midstream and Tall Oak’s founders, the credit facility brings Tall Oak’s total financing to more than half a billion dollars. These funds support the build-out and expansion of Tall Oak’s natural gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play.

Tall Oak President and CEO Ryan Lewellyn commented: "Our gas gathering and processing system has had an outstanding response from producers in the CNOW play, where production continues to accelerate. This additional financing gives us a diversified source of capital that allows us to execute on the initial build-out and rapidly expand the system’s capabilities."

Five banks participated in the credit facility with Capital One Securities Inc. and Compass Bank acting as joint lead arrangers and Amegy Bank, BancFirst and Bank of Oklahoma serving as additional participants. Paul Hastings LLP provided legal counsel to Tall Oak, and Sidley Austin LLP served as counsel to the underwriters. The transaction closed on Wednesday, Oct. 15.

Tall Oak Midstream CFO Max Myers added: "We have a very strong bank group, and we are particularly pleased to have two local Oklahoma banks participating in our credit facility."