Texas Capital Arranges $300M RBL Facility for Midland Basin Acquisition
Texas Capital arranged a four-year, $300 million reserve-based revolving loan as Sole Lead Arranger and Administrative Agent to support New Height Energy's Midland Basin acquisition. The transaction, backed by new equity commitments, precedes pro forma net production surpassing 5,000 barrels of oil equivalent per day.
1. Facility Terms
Texas Capital Securities served as Sole Lead Arranger and Texas Capital acted as Administrative Agent on a four-year, $300 million reserve-based revolving credit facility supporting New Height Energy’s acquisition of Midland Basin producing assets. The RBL facility provides flexible borrowing commitments secured by the acquired oil and gas reserves and is structured to align with projected production cash flows.
2. Growth Implications for Texas Capital
By facilitating this energy financing, Texas Capital deepens its presence in the Permian Basin lending market and bolsters its commercial banking portfolio. The deal underscores the bank’s strategy to deploy capital into higher-yield reserve-based loans while leveraging its energy sector expertise to secure fee and interest income.