AUSTIN, Texas–(BUSINESS WIRE)–CrowdOut Capital LLC, a pioneer in non-bank private lending for growing middle market companies, today announced the completion of a multi-million dollar term loan to Shale Support, a leading provider of frac sand and logistical solutions to the oil and gas proppant market. The proceeds will support the acquisition of two sand mines, spanning over 1,000 acres that contain more than 100 million tons of recoverable high-grade frac sand, which are located near the prolific shale plays in the southeastern U.S., and finance capital expenditures to increase production capacity at the sand mines.
“The frac sand business is growing quickly and we needed a partner that could be nimble and help us to keep pace with market demand,” said Jeff Bartlam, Co-Founder and President of Shale Support. “CrowdOut provided the flexibility and efficiency that rigid traditional lenders could not.”
Backed by OFS Energy Fund, Shale Support operates an extensive mining and transload network strategically aligned with key destination terminals that serve Texas, Oklahoma, Mississippi, Louisiana, Ohio and Pennsylvania regions. Shale Support provides to operators and third-party suppliers its proprietary Delta Pearl proppant, an industry-leading proppant known for its low turbidity or cleanliness.
“We are seeing more companies like Shale Support seek out non-bank financing solutions, especially in the energy and oil & gas space,” said Alexander Schoenbaum, CEO of CrowdOut Capital. “Our flexible structures and collaborative approach to underwriting loans is a unique value proposition over banks and traditional credit funds.”
CrowdOut provides term loans to middle market companies with annual revenues between $10 million – $500 million that seek to expand, acquire or grow. Companies rely on CrowdOut to help reduce lending costs by streamlining the process, shortening the duration and drastically reducing fees/expenses which is in stark contrast to traditional financial institutions. CrowdOut’s underwriting includes extensive due diligence including proprietary screening and data analytics. Once approved, the loan posts on its online marketplace for direct investment by qualified investors, an investment category that never existed until CrowdOut. With this deal, CrowdOut has originated over $135mm in loans.
CrowdOut provided the debt financing along with Encina Equipment Finance. CrowdOut served as the Administrative Agent and Encina Equipment Finance served as the Collateral Agent.
About Shale Support
Shale Support, LLC is a provider of logistical services and frac-sand or “proppant” products to enhance the recovery rates of hydrocarbon products from natural gas and crude oil wells. With headquarters in Picayune, Mississippi, the company operates an extensive mining and transload network strategically aligned with key destination terminals that serve the Marcellus, Utica, Haynesville, Tuscaloosa, Mid-Con, Permian and Eagle Ford Shale Basins. With the logistic flexibility to ship proppant via rail, road and barge, Shale Support’s network boasts more than 100 million tons of frac-sand reserves within its mining properties.
CrowdOut is a private lending syndication platform that offers profitable, middle market and lower middle market companies a better way to raise capital. Its online marketplace provides companies seeking capital lending while offering family offices, institutions and qualified investors the opportunity to invest in private lending on a deal-by-deal basis. CrowdOut has originated more than $135 million of loans since its founding in 2015. To learn more, please visit www.crowdout.com.