PLANO, Texas, Feb. 4, 2013 /PRNewswire/ -- CLG Energy Finance, LLC, an affiliate of Beal Bank focused on financing opportunities in the energy industry, announces a new financing with ERG Resources, L.L.C. ("ERG").
Jonathan Shepko, a Director with CLG Energy Finance, said, "The ERG financing provides the proven management team of ERG with the funding to continue the successful development of its substantial asset base in Southern California."
ERG will use the proceeds from the debt facility primarily to refinance debt and to fund capital expenditure requirements in its Cat Canyon field. This facility also includes an accordion feature that would provide ERG with up to $450 million of gross loan proceeds, funded at the lender's discretion.
The ERG financing confirms CLG's continued commitment to lending in the oil and gas sector.
Owen Hill, also a Director with CLG Energy Finance, added, "We focus on providing acquisition, refinancing and development capital for solid assets supported by strong management. The ERG facility exemplifies our focus and highlights our interest in expanding facilities as an asset base grows."
CLG Energy Finance, LLC is a division of CLG Hedge Fund, LLC, an affiliate of Beal Bank, a multi-billion dollar private financial institution. CLG Energy seeks to make direct investments in energy and energy-related companies, with particular emphasis on debt investments in the upstream oil and gas sector. CLG Energy considers both traditional senior-secured structures as well as one-off, structured secured investments at the project or corporate level and will consider investments ranging from $20M to $500M+.
SOURCE CLG Energy Finance