Natural gas generators from the LTR fleet.
Natural gas generators from the LTR fleet.
Natural gas generators from the LTR fleet.
Natural gas generators from the LTR fleet.
Natural gas generators from the LTR fleet.

Light Tower Rentals Recapitalized by Clearlake Capital Group

Oct. 12, 2016
Clearlake Capital Group has recapitalized Light Tower Rentals Inc. Financial terms weren’t announced. Management and other existing stakeholders participated in the deal. Light Tower Rentals, based in Odessa, Texas, is a diversified specialty equipment rental company focused on oil and gas operations in the Permian Basin area.

Clearlake Capital Group has recapitalized Light Tower Rentals Inc. Financial terms weren’t announced. Management and other existing stakeholders participated in the deal. Light Tower Rentals, based in Odessa, Texas, is a diversified specialty equipment rental company focused on oil and gas operations in the Permian Basin area. The company was founded in 1994.

LTR also has branches in the Eagle Ford, Bakken and Marcellus shale play areas. LTR’s core equipment rental fleet includes mobile natural gas and diesel driver power generators, light towers, mobile housing units, field heaters and fluid handling products. In addition to Texas, it has branches in Arkansas, Colorado, New Mexico, North Dakota, Oklahoma and Pennsylvania.

LTR emerged from Chapter 11 bankruptcy protection as part of a process whereby Clearlake, in partnership with Avenue Capital, led an ad-hoc bondholder committee resulting in a fully consensual pre-packaged bankruptcy plan completed in less than 40 days from filing and resulted in a 90-percen reduction of LTR’s debt. LTR was able to complete the restructuring without disruption to its employees, customers, suppliers or operations.

As LTR’s new majority stakeholder, Clearlake has substantial experience partnering with leading companies and management teams in the industrials and energy service sectors, with numerous relevant investments in that space.

“We are very proud of the entire team at LTR and we want to thank them, our customers and our suppliers for their support during this transition,” said Pat Bond, president and chief operating officer at LTR. “We’d also like to thank our new lead sponsor, Clearlake, for its support as we quickly executed our reorganization plan. This is a fresh start for LTR as we focus on building a leading specialty rental business that offers the same reliable equipment and customer-focused services that have always made us a preferred partner to our clients.”

“LTR can now leverage Clearlake’s substantial resources, experience and relationships in the energy and oilfield sectors to propel its growth strategy and take advantage of the current market environment,” said Colin Leonard, a principal with Clearlake. “We look forward to supporting LTR and its management team as the company executes a reinvigorated growth strategy, including through potential acquisitions.”

Clearlake Capital Group is a private investment firm founded in 2006, with more than $3 billion of assets under management. New York-based Avenue Capital Group has more than $11 billion of assets.