HudsonField LLC and AllianceBernstein’s (AB's) private middle-market lending platform have formed a new financing program for oil and gas operators in key North American production basins. 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 $2 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.
According to Freeman, over the last few years, new banking regulations have limited the availability of financing for middle-market exploration and production 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," Freeman said. "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 stand-alone private lenders."