Innovative Private Capital Deal Structures Keith J. Behrens Energy Group Head & Managing Director Stephens Inc. January 2015
TABLE OF CONTENTS I. INTRODUCTION TO STEPHENS INC. ENERGY GROUP II. PRIVATE CAPITAL OVERVIEW III. CASE STUDIES APPENDIX A. ENERGY INVESTMENT BANKING TEAM B. CLOSED TRANSACTIONS: PRIVATE CAPITAL RAISES The contents of this…
STEPHENS VALUE PROPOSITION Stephens is a highly differentiated, family-owned investment bank with a tradition of nurturing enduring relationships, providing unvarnished advice and leveraging our principal mentality Full Service…
MERCHANT BANKING PERSPECTIVE: STEPHENS CAPITAL PARTNERS OVERVIEW ENERGY INVESTMENTS Stephens Capital Partners LLC (SCP) is the principal investing Stephens Production: group for Warren Stephens and his family Since 1953 SCP has been…
STEPHENS HAS A DEDICATED & GROWING ENERGY PRACTICE WHAT DRIVES THE PRACTICE SECTOR COVERAGE Stephens has been a principal investor in the energy space since 1952 and has a longstanding commitment to assisting and Exploration and…
STEPHENS ENERGY GROUP ADVISORY SERVICES UNWAVERING COMMITMENT TO THE CAPITAL AND ADVISORY NEEDS OF THE ENERGY SECTOR EXPERIENCED BANKING TEAM Stephens Energy Group provides trusted insight on: By Number of Transactions: Public Debt,…
SPONSOR RELATIONSHIPS & DEAL ACTIVITY Stephens has a dedicated financial sponsor coverage group with deep relationships established through years of executing multiple transactions. Over 105 financial sponsors have completed M&A deals…
PRIVATE EQUITY REVERSIONARY STRUCTURE EXAMPLES Typically structured as common equity. Management agrees, up-front, to fund/contribute some percentage of the total equity commitment After the Investor achieves a certain return (IRR) and…
SAMPLE PRIVATE EQUITY STRUCTURE SUBSCRIPTION [X million] Class A Preferred Units / Redeemable Preferred Units COMMITMENT Proceeds from future Capital Calls will be used to fund, among other things, capital expenditures, USE OF…
SAMPLE PRIVATE EQUITY STRUCTURE (CONTD) The management team can recommend Capital Calls on an as-needed basis, but will attempt to limit Capital Call recommendations to one per quarter FUNDING PROCEDURES Investors will have the option…
SAMPLE MEZZANINE DEBT TERM SHEET FACILITY TYPE Senior Note Purchase Agreement MATURITY 3 years Funding Fee: X.X% of the principal amount of each Note FEES Administrative Fee: [X thousand] per year due at closing and each…
PROJECT EQUITY EXAMPLE LINN ENERGY & GSO CAPITAL 500 Million Strategic Alliance January 2, 2015 - GSO Capital Partners agreed to commit up to 500 million with a five-year availability to fund drilling programs on locations provided by…
CASE STUDY: NADEL AND GUSSMAN, LLC WI INVESTMENT October 1, 2013 TRANSACTION HIGHLIGHTS Undisclosed On October 1, 2013, Nadel and Gussman, LLC (N&G or the Company), announced the completion of an investment by Kohlberg Kravis Roberts &…
CASE STUDY: GEOSOUTHERN ENERGY CORP. PE FINANCING January 7, 2011 Transaction Details TRANSACTION HIGHLIGHTS Undisclosed On January 7, 2011, GeoSouthern Eagle Ford Development, LLC, a special purpose entity established by GeoSouthern…
CASE STUDY: ERG RESOURCES, LLC PRIVATE DEBT FINANCING January 24, 2013 TRANSACTION HIGHLIGHTS 350 Million On January 24, 2013, ERG Resources, LLC (the Company) announced the completion of a Senior Secured Credit Facility The Senior…
CASE STUDY: ELM RIDGE EXPLORATION COMPANY, LLC VPP July 17, 2013 TRANSACTION HIGHLIGHTS 119 Million On July 17, 2013, Elm Ridge Exploration Company, LLC closed the sale of a Volumetric Production Payment (VPP) to Freepoint Commodities…
CASE STUDY: E&P PRIVATE EQUITY March 21, 2011 TRANSACTION HIGHLIGHTS 220,000,000 On March 21, 2011, BlackBrush TexStar Energy LP (the Company), a new entity Common Equity established by BlackBrush Oil & Gas, L..P. and TexStar…
CASE STUDY: ELM RIDGE EXPLORATION COMPANY, LLC PRIVATE DEBT April 12, 2010 TRANSACTION HIGHLIGHTS Senior Secured Debt 82,500,000 On April 12, 2010, Elm Ridge Exploration Company, LLC announced the completion of a Senior Subordinated…
ENERGY INVESTMENT BANKING TEAM WITH AN OFFICE IN DALLAS, TEXAS, OUR ENERGY PROFESSIONALS ARE STRATEGICALLY POSITIONED TO ADVISE CLIENTS IN THE ENERGY INDUSTRY Keith Behrens Brad Nelson Paul Moorman Managing Director Managing Director…
CLOSED TRANSACTIONS: PRIVATE CAPITAL RAISES 2014 2013 2012 2013 2012 2012 2012 2012 15 Million Undisclosed 350 Million 62 Million 50 Million 25 Million Senior Secured Working Interest Private Placement Senior Secured Private…
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