Seventy Seven Energy Inc. (NYSE: SSE) has completed the sale of Hodges Trucking Co. LLC to a wholly owned subsidiary of Aveda Transportation and Energy Services Inc. (TSX-V: AVE). At the closing, SSE received aggregate consideration of $42 million, subject to a customary post-closing working capital adjustment, consisting of $15 million in cash and a $27 million principal amount junior secured fixed rate note due June 15, 2020. The note is secured by a second lien on substantially all of Aveda’s fixed assets and accounts receivable.
Hodges currently operates and owns approximately 900 pieces of rig moving and heavy haul equipment, including approximately 200 haul trucks, 400 trailers, 70 bed/pole trucks, 35 cranes, 40 forklifts/loaders, and 160 service vehicles. The sale did not include the real estate used in Hodges’ operations.
Headquartered in Oklahoma City, Oklahoma, SSE provides wellsite services and equipment to US land-based exploration and production customers operating in unconventional resource plays. SSE’s services include drilling, hydraulic fracturing, and oilfield rentals.