Meridian assists in $9 million financing and pending merger of two Calgary based oil and gas equipment companies
(Calgary, Alberta) Changing the paradigm for how exploration and service companies acquire and manage equipment has resulted in unprecedented growth for two Calgary based oil and gas equipment companies. Meridian today announced the arrangement and assistance in the financing of $9 million in equity, senior and subordinated debt for one company and its intent to fully merge with its former strategic partner.
The deal, closed today, involves $800,000 in new equity and private subordinated debt, as well as $1.2 million subordinated debt from Meridian’s affiliated Trinity Capital Canada LP, and up to $7 million in operating capital from HSBC Bank Canada.
“Our hockey stick growth in 2006 had us on a path to going public,” commented the CEO of the company. “As the process stalled somewhat we were fortunate enough to be introduced to Meridian who have proven to us that private capital is readily available, even with less overheated market conditions in the oil and gas sector this winter. This has allowed us to take a breath, proceed with our planned merger and continue to grow the company and not go public too soon.”