AloStar Business Credit has provided a $15 million senior secured revolver and a $2 million equipment term loan to Southwest Oilfield Products (“Southwest”), a manufacturer of mud pump solutions and premium well servicing equipment. The company’s corporate offices and primary manufacturing facility are located in Houston, Texas with warehouse and distribution facilities located throughout the U.S.
Founded in 1947, Southwest’s mud pump division focuses on mud pump products which include fluid end modules, pistons, liners, and other related products used during onshore and offshore drilling of oil and gas wells. Additionally, the well servicing equipment division focuses on the manufacturing of new equipment used in well completion, stimulation, and intervention such as frac pumpers, coil tubing, nitrogen and snubbing units.
“Southwest Oilfield Products has consistently been a premier producer of high-quality mud pump solutions,” said Andy McGhee, president of AloStar Business Credit. “Over the next five years we expect to see them continue their growth trajectory alongside the market growth in this industry.”
Southwest is well positioned to take advantage of the recent energy renaissance that has begun in the U.S. According to a 2012 report from the U.S. Energy Information Administration, the U.S. is slated to become the world’s top producer of oil by 2020, a net exporter of oil around 2030, and nearly self-sufficient in energy production by 2035.
“AloStar is a good fit with our current growth perspective,” said Paul DeWeese, CEO of Southwest Oilfield Products. “We are delighted that AloStar could provide capital for us as we implement our initiatives to help our growth over the next several years.”
AloStar Business Credit provides asset-based lending products nationwide to businesses ranging between $20 million and $300 million in revenue and with financing needs ranging between $5 million and $40 million. AloStar Business Credit is the asset-based lending arm of AloStar Bank of Commerce.
Southwest Oilfield Products, Inc. is a premier oil and gas equipment manufacturer providing innovative mud pumping solutions and well service systems to the world’s leading oil and gas exploration and production companies.