Oversubscribed CAD $800 million transaction provides over CAD $400 million in liquidity to ARC Energy Fund 7 investors
CALGARY, AB, June 10, 2024 /CNW/ – ARC Financial Corp. (“ARC”), Canada’s largest energy focused private equity manager, announced the recapitalization of Aspenleaf Energy Limited (“Aspenleaf”), a 25,000 barrel-per-day, high-netback, light oil producer. The transaction provides over CAD $400 million (US $300 million) of liquidity for ARC Energy Fund 7’s investors and co-investors and raises over CAD $100 million in new equity for the Alberta-based company.
The new equity was heavily oversubscribed, a testament to the quality of the opportunity and Aspenleaf’s long-term return profile.
“The majority of investors continuing to hold positions and outsized demand for the new equity in Aspenleaf speaks to the appeal of the company’s high free cash flow yielding assets and illustrates one of the strategies we are pursuing in ARC Energy Fund 11,” said Brian Boulanger, ARC’s Chief Executive Officer. “Transactions of this nature allow us to optimize Aspenleaf’s high free cash flow to generate compelling investor returns.”
“This unique transaction builds on our strategy and track record to acquire, enhance and exploit top-quality assets. It allows our investors to continue to leverage the strength of the team we have built and provides the runway to harvest the high distributable free cash flow generated from our large oil-in-place asset base,” added Bryan Gould, Chief Executive Officer and founder of Aspenleaf.
Houlihan Lokey acted as the exclusive placement agent for the Aspenleaf transaction and represents ARC as its global placement agent.
Matt Swain, head of direct investments and secondaries at Houlihan Lokey, echoed the merits of the transaction, commenting, “Given relatively high commodity prices and the need for liquidity in private oil and gas holdings at many investment institutions, we are seeing other investors flock to high-quality energy investments like Aspenleaf.”
About ARC Financial Corp. – Founded in 1989, ARC Financial Corp. is committed to building high-performing businesses that address the world’s energy and sustainability needs. To date, ARC has raised CAD $6.3 billion across eleven energy focused funds since the launch of its private equity business in 1997 and invested capital in more than 180 companies across the energy spectrum. ARC’s newest funds, ARC Energy Fund 10, an energy transition focused fund, and ARC Energy Fund 11, a Canadian oil and gas strategy, will both continue to play a critical role in satisfying the world’s energy demands. www.arcfinancial.com
About Aspenleaf Energy Limited. – Founded in 2013, Aspenleaf Energy Limited is a private oil and gas exploration and production company that has acquired and developed light oil fields in central Alberta. The company has established a track record of strong free cash flow generation and return to investors and is positioned with a team and assets to continue to provide shareholders with attractive returns. www.aspenleafenergy.com
Advisory Regarding Forward-Looking Statements
This press release includes forward-looking statements. There is no assurance that the results or events indicated or suggested by the forward-looking statements are correct or will occur (or if they do, what benefits ARC or Aspenleaf may derive therefrom). The press release also contains references commonly used in the oil and gas industry that are not defined under IFRS. We believe these items such as “Netback” and “Free cash flow” provide useful information to investors and shareholders.
SOURCE ARC Financial Corp.
For further information: For media inquires, please contact: Canada – Martin Cej, [email protected], +1 403 512-5730; International – David Lanchner, [email protected], +33 (0)6 33 43 50 76 or +1 646 302 2435; ARC Financial Corp., contact: Kent Foster, [email protected], +1 403 292-0677
