Resources

Investment Size

$5M - $50M

LTV/LTC

Up to 80-90%

Average Term

1-3 Years

Geography

North America

Strategy Description

Arena's Resources Finance platform originates and invests in secured, reserve-based loans for middle-market oil and natural gas exploration and production companies (including royalty and mineral aggregators) and asset-based and cash-flow-based loans for select natural resource based businesses and infrastructure companies across midstream, downstream, agriculture, chemicals, metals and mining, power and utilities, and renewables industries located throughout North America.

Oil & Gas: Upstream, Midstream, Downstream
Royalty and Mineral Aggregators
Precious Metals
Agriculture

Chemicals
Metals & Mining
Power & Utilities
Renewables

Arena generally focuses on debt investment opportunities that do not typically attract the attention of conventional bank or commercial finance lenders.

Underwriting Ability

1st/2nd lien on producing assets, advance against PDP, PDNP, PUD, probable reserves, A/R, inventory, non-GAAP, special situations, cash flow, royalties, minerals

Sponsorship

Private equity sponsors, independent sponsors, and directly with management and owners of companies

Investment Structures

Acquisition and Development Financings:

Recompletions, workovers, infill drilling, new horizons, asset acquisitions

Structured Investments:

Convertible debt preferred equity, debt with warrants

Recapitalizations, Restructurings, and Exit Financings:

Senior stretch, bridge loans, DIP loans, balance sheet repositioning