#United States #Houston #Legado Capital #Revolution Resources #Mountain Capital

Legado Capital Achieves $72 Million ABS Financing for Energy Sector Acquisition

Legado Capital Advisors, LLC today announced its successful completion of a substantial $72 million asset-backed securities (ABS) issuance for Revolution Resources III, LLC, often referred to as Revolution III. This financial milestone not only underscores Legado Capital's commitment to supporting energy sector investments but also enables Revolution III to pursue its acquisition of Amplify Energy’s Oklahoma assets, marking a significant step in its expansion strategy.

The announcement comes as Revolution III seeks to deepen its foothold in the Oklahoma oil market, a region known for its productive energy resources. By securing this financing, Revolution III, a portfolio company under Mountain Capital Management, LLC, is set to enhance its operational capacity and streamline its asset acquisition processes.

Victor Mendoza, the Managing Partner at Legado Capital Advisors, expressed his enthusiasm regarding the partnership: “It was a privilege to collaborate with both Revolution III and Mountain Capital for this ABS issuance. This transaction establishes a robust framework for future acquisition financings, and we are eager to work alongside the Mountain Capital team in leveraging the ABS structure to create more value.”

Key Highlights of the ABS Assets

• - 340 Producing Wellbores: Revolution III will have access to a diverse array of producing wellbores.
• - 98.5% Operated: The majority of the operations will be managed directly, ensuring control over production processes.
• - Stable Production Decline: The financing is structured to accommodate a stable decline in production rates, which is a common scenario within the oil industry.

This financing is crucial as it provides long-term and structured capital, backing Mountain Capital’s strategic growth endeavors. It is a testament to the growing investor confidence in Mountain Capital’s disciplined acquisition approach and Revolution III's operational efficiency and formidable execution.

Legado Capital played multiple roles in this financing, acting as the sole structuring agent, sole placement agent, and sole rating advisor. Notable legal guidance was provided by Willkie Farr & Gallagher LLP for issuer counsel, and Orrick for investor counsel, ensuring thorough compliance and structuring.

About Legado Capital Advisors

Legado Capital Advisors is recognized as a leading advisory and capital solutions provider specializing in structured finance. With a focus on strategic transactions, investor positioning, and capital markets execution tailored primarily for the oil and gas sector, the firm is known for its deep industry expertise and innovative financial advisory. This expertise aids clients in optimizing their capital structures and substantive value creation. Securities related to this transaction were offered through Finalis Securities LLC, a member of FINRA/SIPC, delineating Legado Capital Advisors as a separate and unaffiliated entity to the broker-dealer.

This financing arrangement not only symbolizes a positive shift for Revolution III but also positions Legado Capital Advisors as a significant player in the structured finance landscape of the oil and gas industry, setting a precedent for future opportunities in this ever-evolving market.