Guzman Energy has announced the completion of an $80mn revolving credit facility with BciCapital, a capital markets platform affiliated with City National Bank of Florida. This operation, with an initial maturity of three years and a one-year extension option, aims to provide financial flexibility to the company and support its expansion plans in the Western United States.
Local banking partners involved
The financing, structured with the participation of UMB Bank and InBank, offers Guzman Energy additional access to liquidity and standby letters of credit. Both institutions have a significant presence in Denver, where Guzman Energy is based, further strengthening local support for the company’s development.
BciCapital acts in this transaction as initial lender, administrative agent, account bank, sole lead arranger, sole bookrunner, and issuing bank. UMB Bank and InBank also provide support as participants in the facility, expanding Guzman Energy’s banking base for its upcoming operations.
Strengthening flexibility in a dynamic market
Guzman Energy Chief Financial Officer Mike Ott stated that this revolving credit will increase the company’s flexibility amid evolving energy markets. He indicated that the facility’s structure would reinforce Guzman Energy’s ability to expand its energy portfolio and ensure the ongoing supply of energy solutions to its customers.
The facility will be used for working capital needs, energy procurement, and support for the expansion of Guzman Energy’s service offering. This financing comes as the company pursues a strategy to establish itself in the Western U.S. markets, where demand for competitive energy solutions remains strong.
Vinson & Elkins LLP advised Guzman Energy on the transaction, while Venable LLP supported BciCapital on legal matters. According to the stakeholders, access to a revolving credit structure provides Guzman Energy with new flexibility to adapt to sector volatility and seize business opportunities within its territory.
