Vortus Investments Advisors, a private equity firm focused on providing development capital in the onshore US upstream sector, completed its first investment with a $50 million equity commitment to Foreland Resources LLC on December 30, 2013.
Vortus and its partners made the commitment in partnership with Foreland’s existing management team primarily to develop Foreland’s core 11,800 acre Permian Basin asset. Approximately $37 million of the $50 million equity commitment was funded at close. The transaction also included the refinancing of approximately $120 million of Foreland’s existing mezzanine facility into a two tranche facility comprised of a $50 million senior credit facility and a $70 million second lien facility provided by funds advised by Sankaty Advisors LLC, the independently-managed fixed income and credit affiliate of Bain Capital LLC. Sankaty also provided 20% of the $50 million equity commitment.
Privately-held Foreland was founded in 2012 by John T. Beecherl and is headquartered in Dallas, Texas. Foreland is a domestic onshore upstream company with operations focused in the Southern Midland Basin within the Permian Basin region of West Texas as well as other assets including an approximately 15,000 acre position in Sterling County, Texas. Its core asset is a contiguous 10,800 net acre leasehold block with liquids-heavy production from development drilling by the current owner/operator. Beecherl’s technical, operational, and financial team includes: Messrs. Tony Beilman, Bruce K. Hightower, Bill D. Baker, Jr., Barry Bradford, and Peter S. Crow.