Mammoth Energy Services in Oklahoma City announced the completion of a multi-million dollar transfer from its wholly owned subsidiary Cobra Acquisitions LLC to pay down on its debt.
Cobra transferred approximately $54.4 million of its outstanding receivable with the Puerto Rico Electric Power Authority to SPCP Group, LLC in exchange for net proceeds of $46.3 million. The transfer was made Dec. 1, according to Mark Layton, Chief Financial Officer.
“This deal allows us to increase liquidity and invest in our business. We used $26.9 million of the proceeds to pay down borrowings under our revolving credit facility, which is now undrawn,” he explained.
“We plan to use the remainder of the proceeds to invest back into our business, which may include upgrading two of our hydraulic fracturing fleets with dual fuel capabilities, as well as for general corporate purposes.”
The funds from PREPA stemmed from the company’s work to restore electrical power to Puerto Rico following the 2017 Hurricane Maria.
The Stifel, Nicolaus & Company, Incorporated Special Situations Team assisted Cobra and SPCP Group in arranging this transaction.
Source: press release
