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Francis Drilling Fluids, Ltd

Rebranded as FDF Energy Services. FDF Resources Holdings is holding company.
Oil Drilling Services

"FDF, a Lafayette, La. based company in operation since 1977 is owned by Prophet Equity, a private equity firm based in Southlake, Tx. FDF is one of the oldest drilling fluids companies on the Gulf Coast and one of the largest frac sand distributors in North America. FDF has been at the forefront of Environmental Stewardship, providing “disposal free” dockside cleaning since 1998". From press release.

"FDF Energy Services has been providing world class customer service to the Oil and Gas Industry for over forty years. Headquartered in Lafayette Louisiana, FDF employs nearly 500 industry professionals who are focused on exceeding customer expectations while providing a safe, positive, and fulfilling work environment. Our diverse portfolio of products and services and proven history of excellence, makes us uniquely qualified to provide solutions across the entire spectrum of a well’s life cycle. FDF’s strategic network of facilities, coupled with our last mile logistics expertise, allows us to provide unparalleled value. FDF Energy Services can conquer any challenge, in any geography". From LinkedIn.

CORPORATE HIGHLIGHTS

10/12/2018: Company files Chapter 11 on September 29, 2018

10/27/2014: Company acquires Permian Basin Sand Haulers

7/17/2014: Company acquires Envirochem.

5/15/2012: Company acquired by Prophet Equity.

BDC Credit Reporter View

The only BDC with exposure to the Company is Gladstone Capital (GLAD), which financed the initial acquisition by Prophet Equity in 2012 and has increased its exposure over time to include two second lien loans, Preferred and common stock.The $26.6mn of debt pays interest in non-cash form at double digit rates. After dropping sharply in value between June 2015 and June 2017, where the debt was written down by 65%, the Company's valuation had been increasing to reach a 24% discount at June 2018. However, the Company unexpectedly filed for Chapter 11 on September 29, 2018 with little fanfare, announcing $50mn-$100mn of liabilities and up to $50mn of assets. This is likely to result in income loss for a period for GLAD and - potentially - a write-down or write-off in the value of the investment. At the very least, the $1.2mn of Preferred at cost will be likely written off. We don't know what GLAD's plans are going forward. (Updated October 16, 2018)

INVESTMENT HIGHLIGHTS

IIQ 2018: Extract from GLAD 10-Q: "The primary driver of net unrealized appreciation for the three months ended June 30, 2018 was improvement in the financial and operational performance of certain portfolio companies, most notably Francis Drilling Fluids, Ltd".

ADVANTAGE DATA INVESTMENT RECORDS