Asset Valuation, Financial Analysis, Underwriting, Capital Deployment all leveraging the Hilco Global Platform.
Hilco applied its extensive expertise in asset valuation and monetization, combined with its specialty lending capability, to deliver an accelerated solution. This included underwriting of a bridge loan which enabled our client to acquire and re-sell the target oil & gas assets under highly favorable market conditions.
The Atlantic Coast Pipeline was a planned natural gas pipeline designed to span several hundred miles from West Virginia, through Virginia, and into eastern North Carolina. The project was terminated in July 2020 due largely to strong opposition from community, special interest and other groups across the region.
In 2021 Asset Redeployment Solutions,LLC (ARS), an established material broker in the midstream oil & gas industry and expert in increasing efficiencies within the procurement cycle for large diameter pipe, valves and fittings, sought to acquire the defunct pipeline’s un-utilized high-capacity, heavy grade 42- and 36- inch diameter steel pipe from its owner.
With an understanding of the tight window that existed to seize a unique market opportunity, Hilco Commercial Industrial (HCI) brought a long standing reputation for unparalleled valuation, advisory, and monetization expertise combined with the ability to deploy capital resources for special situation financing to actively engage with ARS on an accelerated timeframe to acquire theAtlantic Coast Pipeline assets.
HCI was able to structure a unique transaction leveraging both Hilco’s deep understanding of asset value and its special situations lending capabilities, to provide ARS with a solution that offered an innovative approach to delivering the capital flexibility it needed to consummate the acquisition.
From initial contact to preliminary diligence, underwriting and deployment of capital, the total elapsed timeframe of the transaction was under 30 days. This timeline provided ARS with a competitive advantage in successfully acquiring the target asset, selling it into an immediate forecastable high demand market.
Specialty Lending / Capital Deployment
- Hilco Commercial Industrial
- Hilco Corporate Finance
- Hilco Capital Solutions