IFP---Cimarron-2014

Transactions

Cimarron Acid Service 2014

Cimarron Acid & Frac is a leading provider of hydraulic pressure pumping and acid stimulation services to customers in Western Oklahoma and Southern Kansas. The company primarily serves well capitalized independent exploration & production companies and is led by founder Trent Watkins.

In September 2013, Iroquois Capital Group acted as financial advisor to Annapurna Capital Management in its acquisition of Cimarron. Iroquois helped Annapurna structure and execute a sophisticated capital plan that included equipment financing, junior debt and seller financing. The transaction was structured with a goal of minimizing the initial equity contribution.

Iroquois Financial Partners provided junior debt to facilitate the transaction. Iroquois’ investment banking team leveraged this affiliated debt fund to round out the capital structure, ensuring that a successful deal could be closed within a quick timeline. The Cimarron transaction illustrates the synergies that Iroquois clients can realize from Iroquois’ investment bank and Iroquois Financial Partners.

In February 2014, Iroquois Capital Group again served as financial advisor to Cimarron in its acquisition of a second spread of pumping equipment. Iroquois helped Cimarron secure the capital needed to fund this transaction, including new equipment financing, a senior revolver, and additional junior debt from Iroquois Financial Partners.

Iroquois Financial Partners provided a new, larger junior loan to Cimarron to help fund the equipment acquisition. This loan illustrates IFP’s ability to work with its borrowers and to help them grow, even after the initial funding. Iroquois was able to collaborate with several other lenders within Cimarron’s sophisticated capital structure to increase its commitment to the Company to fund this transformative transaction.

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