Nova Compression Enhances Growth Strategy with Significant Capital Raise
Nova Compression, LLC, a premier provider of contract compression infrastructure, has announced a notable capital raise of $325 million to strengthen its growth strategy. This raise includes a $105 million structured equity commitment from OIC LP and a robust asset-based loan (ABL) facilitated by J.P. Morgan, in collaboration with Bank OZK, First Citizens Bank, and Sunflower Bank. This financial backing represents a crucial step for Nova as it continues to develop its operations in the compression market.
Impact of the Capital Raise
Jonathan Mitchell, the Chief Executive Officer of Nova Compression, expressed the significance of this transaction, stating, "This transaction marks a pivotal moment for Nova. OIC's investment equips us with the necessary financial resources to seize the opportunities available in the compression market. Additionally, the credit facility led by J.P. Morgan provides us with the flexibility to amplify our mixed fleet strategy." With this investment, Nova is committed to delivering exceptional service across various horsepower ranges, utilizing both natural gas and electric units.
Future Plans for Expansion and Growth
Nova intends to leverage the new capital to expand its diverse natural gas and electric engine fleet. The company plans to explore new geographic markets while pursuing acquisitions that can add value to its operational model. This ambitious approach positions Nova to thrive in an evolving industry landscape.
Partnership with OIC
Chris Leary, an Investment Partner at OIC, highlighted the excitement surrounding this collaboration: "OIC is thrilled to partner with Nova as they embark on this new growth phase. Nova stands out as a successful platform with a diverse range of assets that provide essential compression services to key players in the energy sector. The company is poised to unlock growth opportunities in both existing and new markets."
Insights from Industry Experts
Nova Association with seasoned advisors has strengthened its position. Moelis & Company LLC acted as the exclusive placement agent, while Foley & Lardner, LLP served as legal counsel to Nova Compression, and Vinson & Elkins LLP advised OIC. This expert guidance has facilitated a productive capital raise and set the stage for future success.
About Nova Compression
Nova Compression is dedicated to providing premium natural gas compression services for exploration and production companies. Its business model focuses on a mixed fleet strategy offering a comprehensive range of natural gas and electric compression solutions, spanning from 100 to 3,000 horsepower. The company is committed to enhancing its customer relationships and creating optimal work environments for its employees.
About OIC
OIC, managing approximately $5 billion in assets, targets investments in North America and select international markets. Their entrepreneur-driven approach creates tailored financial solutions for middle-market companies aiming to scale and deploy sustainable infrastructure. The firm's investment focus includes sectors such as energy efficiency, sustainable power, and logistics, underscoring its commitment to fostering innovation across the industry.
Contact Information
For media inquiries, please contact Alex Weintz at 914.282.3229.
Frequently Asked Questions
What is Nova Compression's recent capital raise amount?
Nova Compression recently raised a total of $325 million including a structured equity commitment and an asset-based loan.
Who provided the equity investment for Nova Compression?
The structured equity investment was provided by OIC LP, a key partner in Nova's growth.
What are Nova Compression's future growth plans?
Nova plans to expand its fleet, explore new markets, and pursue strategic acquisitions to enhance value.
What role did J.P. Morgan play in this transaction?
J.P. Morgan facilitated the asset-based loan for Nova Compression as part of its financing strategy.
Who served as legal advisors during this capital raise?
Foley & Lardner, LLP advised Nova Compression, while Vinson & Elkins LLP advised OIC on this transaction.
