Backcast Partners Provides Senior Secured Debt and Preferred Equity to Support Nighthawk’s Strategic Growth
Backcast Partners Supports Strategic Growth of Nighthawk with Capital Investment
Nighthawk Completion Services (“Nighthawk”), a leading provider of proprietary chemicals and fluid systems for oil and gas well completions and production clean-outs, has received a majority investment and growth equity commitment from an investor group led by Bruce Ross, including Backcast Partners (“Backcast”) and certain energy service executives.
Cody Nevilles, Nighthawk’s CEO, said, “This investment will help Nighthawk accelerate its growth. Due to Bruce’s operating and transactional experience in the energy sector, he quickly delivered a recapitalization and growth investment structure on reasonable terms. We could not be more excited to partner with Bruce, Backcast, and an outstanding group of energy executives as Board members and shareholders including Bruce as Chairman, Tracy Turner, former CEO of CP Energy, David Dunlap, former CEO of Superior Energy Services, McGowin Patrick, former CEO of Terra Midstream, and Stacy Racca, CEO of Racca Solutions Group.”
Bruce Ross, Nighthawk’s new Board Chairman, commented, “I was excited to get the opportunity to partner with Cody, the Nighthawk management team, the Backcast team and work with my friends at Piper Sandler to organize and complete a transaction that is a true win-win for all parties. Early on in our transaction evaluation process, I spent significant time with the team at Backcast and we quickly agreed on a deal structure of new term debt and preferred equity that matched up well with the objectives of Cody and his existing partners, Mark Martinez and Chris Smith. The team of new Board Members and shareholders represents an outstanding group to help management continue to evolve its core business and work to achieve significant growth plans. We are very excited to keep the entire management team in place and work to augment the team as we grow geographically and through new product initiatives. We also put in place a new Line of Credit from Bank of Texas as part of our plans to support the capital growth plans for the Company.”
Ed Cerny, Managing Partner and Co-Founder of Backcast, stated, “Our investment in Nighthawk reflects Backcast’s confidence in the Company’s robust business model, the capabilities and reputation of its management team and sponsor group, and its specialized, leading role within its markets. Rarely do we receive the sort of universally positive customer feedback that we heard in our diligence on Nighthawk: the Company’s customers not only appreciate the high quality of service they currently receive, but they are also eager for Nighthawk to expand its scope of services in existing and new geographies. Further, we believe the sponsor group’s key business relationships and acumen will be highly additive to Nighthawk’s impressive management team over this next phase of growth and have already seen significant benefits of the work they are performing together.”
Piper Sandler & Co. served as the exclusive financial advisor to Nighthawk for the transaction. Kean Miller LLP provided legal counsel to Nighthawk. Locke Lord LLP provided legal counsel to the investor group and McGuireWoods LLP provided legal counsel to Backcast. A multifaceted insurance program was also put in place with the assistance of David de Roode’s energy M&A team with Lockton, who was involved in the due diligence and insurance negotiations.
About Nighthawk Completion Services
Nighthawk is a leading provider in the U.S. of proprietary chemicals and fluid systems used during the drill-out phase of well completions and for clean-outs of producing wells. The Company’s proprietary light weight fluid system is manufactured in-house and has rapidly gained market share over the last several years. The Company also offers complementary conventional mixing plants, flowback and torque and test services.
About Backcast Partners
Backcast Partners, formed in 2016, manages value-additive, credit-focused private investment funds providing capital to both private-equity backed and privately held management-owned companies. With approximately $1.3 billion in assets under management, the Backcast team has been supporting traditional middle-market companies ($7.5 million to $50 million of EBITDA) for decades. Backcast’s managed funds have a very flexible capital mandate and seek to invest from $20 million to over $150 million per transaction. Backcast Partners operates out of offices in New York City and Millburn, NJ.
About the Investor Group
In addition to Backcast, the individual investor group was led by Bruce Ross, who was the Founder and former CEO of LoneStar Group and the Managing Partner of OFS Energy Fund, and includes Tracy Turner, former CEO of CP Energy, David Dunlap, former CEO of Superior Energy Services, McGowin Patrick, former CEO of Terra Midstream, Stacy Racca, CEO of Racca Solutions Group, and Jeff Sangalis, the Managing Partner of Prolign Capital.
