NEW YORK, Oct. 7, 2015 /PRNewswire/ — HudsonField, LLC., and AB’s (AllianceBernstein) private middle market lending platform, today announced a new financing program for oil and gas operators in key North American production basins. The new program comes at a critical time for businesses as the oil slump continues and financing in the oil and gas sector has been challenged. HudsonField will serve as a strategic origination partner for financing opportunities in the North American oil and gas sector for AB Private Credit Investors.
“For HudsonField, this is a major success story in our company’s development as a newly formed energy merchant, allowing us to offer critical financing to our clients at a time of market volatility,” said Ben Freeman, HudsonField CEO. “Our vision is to provide integrated financing, marketing, logistics and physical risk management to underserved middle-market oil and gas operators in North America.”
AB Private Credit Investors currently has approximately $2.0 billion of capital available to invest and focuses on directly originating secured debt opportunities, including senior, unitranche and second lien loans. AB Private Credit Investors will also consider opportunities involving mezzanine, structured equity and minority equity co-investments. AB Private Credit Investors established its presence in the oil and gas sector earlier this year with the hiring of Patrick Gimlett from GE Energy Financial Services and Kevin Alexander from ORIX USA.
“We are excited about the opportunity to work with HudsonField as our strategic origination partner in the oil and gas sector,” said Brent Humphries, President of AB Private Credit Investors. “We believe their client-aligned merchant model and expert team will serve as a significant origination source for middle-market energy loans and investments. Their expertise in oil and gas risk management and hedging will further serve as a benefit to borrowers that seek to actively manage their exposure to oil and gas prices.”
According to Freeman, over the last few years, new banking regulations have limited the availability of financing for middle-market E&P producers and many banks have exited the commodities business.
“This has created an opportunity for new lenders and strategic advisors to step in and help producers succeed in an increasingly distressed market,” said Freeman. “AB Private Credit Investors’ credit execution capabilities, combined with HudsonField’s physical markets expertise, deep relationships, and risk management experience in the sector offer a strong alternative to standalone private lenders.”
AB is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets.
At June 30, 2015, AB Holding owned approximately 36.9% of the issued and outstanding AB Units and AXA, one of the largest global financial services organizations, owned an approximate 62.7% economic interest in AB.
Additional information about AB may be found on our website, www.abglobal.com.
HudsonField is a client-focused, energy commodity merchant and growth partner providing solutions to complex risk management challenges, including integrated physical risk management, logistics and financing to underserved, small and mid-sized energy producers and end-users in North America. Formed in 2014, HudsonField is led by energy and financial services industry veterans from Goldman Sachs, Buckeye, and Trafigura, among others. Additional information about HudsonField may be found on our website, www.hudsonfield.com.