Laney Lands $43 Million in Financing
CIT Group Inc. a provider of financing and advisory services to small businesses and middle market companies, announced that it arranged a $43 million senior secured credit facility for Laney Directional Drilling, Co., a portfolio company of Chart Capital Partners. The financing will be used to refinance an existing facility and provide additional funds for capital expenditures for the company.
Laney specializes in servicing natural gas & oil pipeline companies with complex, challenging or large scale directional boring requirements and has grown to dominate that market due to its performance and close relationships within the industry.
Located in Houston, TX, Laney installs primarily oil and gas pipelines but installs an occasional telecommunications conduit via directional boring.
Other applications of directional drilling include water lines, sewer lines and environmental remediation casings. HDD is used for crossing waterways, roadways, shore approaches, congested areas, environmentally sensitive areas, and areas where other methods are more costly or not possible.
Mauricio Perini, Chief Financial Officer of Laney Directional Drilling, said,
"The pipeline construction and maintenance industry is poised for a significant and long cycle of build-out driven by dramatic growth in production of emerging unconventional shale gas, shale liquids and Canadian oil-sands production. Tying this increasing production into the existing pipeline network will continue to necessitate a significant amount of new pipeline infrastructure as well as repair work on existing aged infrastructure. This financing provides Laney with the necessary funds to capitalize on the heavy investment in pipeline construction that will further fuel the growth in our industry. CIT's deep industry expertise was evident throughout the various stages of the transaction. We look forward to growing this relationship."