Tuesday, July 9, 2024

Anvil Channel closes $65MM Direct Loan to Certus Oil & Gas

Anvil Channel Energy Solutions  announced final close of a USD$65,000,000 senior secured loan facility to Certus Oil & Gas, Inc., supporting the acquisition of producing assets in central Alberta. This transaction marks the first cross-border transaction undertaken by the new Anvil Channel direct energy lending initiative.

“We are excited to have successfully executed this transformative transaction with support from the Anvil team; the creative capital solution structured by Anvil came at a critical time in our company’s growth cycle.” said Rob Brady President and CEO of Certus.

Anvil seeks to solve the gap between bank lenders, which have largely pulled back from the micro and mid-cap market in the U.S. and Canada, and the typically more expensive mezzanine and preferred equity providers.

“We were particularly happy to provide a liquidity solution in this persistently challenging energy space.”  Noted Cary Meadow, Chairman and CEO of Anvil Channel.  “This transaction is a perfect representation of Anvil’s thesis and mission – provide established producers with much needed acquisition and development capacity to meet their growth goals in a tight liquidity market.”

Proceeds of the loan were used to fund the corporate acquisition of Sitka Exploration Ltd., providing geographically and technically complimentary assets to the existing Certus platform.

Anvil continues to seek strong sponsor partners with deep knowledge in the upstream E&P space who require acquisition, refinance and development capital for producing assets.

Noted David O’Driscoll, Co-CIO and President of Anvil Channel, “We are excited to partner with the Certus team to support their transformative acquisition and next phase of growth.  Our expanded investment mandate allows us to consider supporting proven management teams in Canada as well as in the U.S., and we’re delighted to get this inaugural cross-border transaction closed in an expedited manner.” Echoing this sentiment Co-CIO James Avery said, “We believe our ability to stretch lend in this environment makes us an extremely competitive alternative to other sources of capital while maintaining a comfortable pricing level for the Company by tailoring the cost to fit production and cash-flows and look forward to continuing to review new opportunities throughout the balance of the year.”