Pinnergy is a diversified energy services company with a broad and comprehensive service offering to customers throughout Texas, Louisiana and New Mexico. Pinnergy, one of the largest independent oilfield service companies, provides a full suite of fluid management, drilling, oil & gas waste disposal and rental services.
The Company is a leading oil services company. The only BDC with exposure is Fidus Investment (FDUS) which booked a subordinated loan at the worst possible time: in mid-2014. Through 2015 to June 2016, the BDC reduced the value of its position by nearly 40% from $20mn at Cost to $12mn. In the IIQ of 2016, weak market conditions caused the loan to be placed on non-accrual. Inexplicably, the value was not materially altered from the IQ. Fidus on its IIQ 2016 CC said restructuring negotiations were underway, and hoped for a resolution by 9-30-2016, but the situation is "fluid". Still, the credit trend is down, given what's happening in the sector, the junior status of the loan and the non-accrual, whatever the BDC's valuation says. We have a Corporate Rating of 5 on the Company, which means we believe a material Realized Loss is the most likely outcome.