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R and D Enterprises Completes Recapitalization

With the credit markets still reeling from a deluge of underperforming loans, R and D faced a significant challenge to find a solution on recapitalization of their existing loan.

31 August 2021

With headquarters in Harvey, LA and field operations in Port Fouchon, R and D Enterprises has provided critical storage equipment systems to the offshore oil and gas industry for over twenty years. During the 2020 oil and gas downturn, R and D’s senior lender sold its energy loan portfolio to a hedge fund, and, consequently, R and D was unexpectedly faced with negotiating a new lending relationship (or identifying an alternate solution) once their loan term was expired. With the credit markets still reeling from a deluge of underperforming loans, R and D faced a significant challenge to find a solution.

In late May, 2021, R and D retained Pritchard Griffin to access its lender relationships. Following a five week outreach process, R and D entered into exclusive terms with North Avenue Capital, the country’s most successful lender utilizing the USDA’s loan guarantee program. While oil and gas continues to be a non-starter for many lenders, North Avenue took the time to understand R and D’s long and successful history and the critical nature of the equipment that the Company provides. In doing so, North Avenue was able to underwrite to pricing terms closely synonymous to R and D’s original bank lender. With North Avenue, R and D, and Pritchard Griffin working in close collaboration with their respective legal teams, the recapitalization loan was closed on August 31, 2021 – meeting the timeline outlined in North Avenue’s original letter of intent.

R and D’s Chairman Tom Gurtner expressed, “We’re thrilled to complete this complex recapitalization and want to thank the Pritchard Griffin team for facilitating the successful process. We especially want to thank North Avenue’s Ben Mathewson and Maria Fueyo for their guidance and diligence. Pritchard Griffin and North Avenue both delivered as promised. That’s quite a feat considering we had to work around a Category 4 hurricane to ensure we met our closing deadline”.

North Avenue Vice President Ben Mathewson reiterated, “We appreciate the opportunity to provide R and D a superior solution for their recapitalization and we look forward to working with Ken (Griffin) and Pritchard Griffin on future projects”. R and D was advised by Phelps Dunbar as its legal counsel for the transaction while North Avenue was represented by Dover Miller Karras Langdale & Brantley.

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