Meridian Energy Group, Inc. has finalised a placement agency agreement with Brookline Capital Markets, LLC, under which Brookline will be the exclusive placement agent and principal financial advisor to Meridian in connection with the project financing of Meridian's Davis refinery in Belfield, North Dakota (the PAA).
The Davis refinery is a 55 000 bpd nominal capacity full conversion facility that will be built near the community of Belfield in Billings County, North Dakota. Davis will be installed in several stages, involving successive capital infusions totalling several hundreds of millions of dollars. The first stage of the project financing for Davis will be placed by Brookline later this year for the initial 27 500 bpd hydroskimming stage of Davis (called Davis Light), which is expected to start construction in early 2017.
The Davis refinery, which received its rezoning and conditional use permit from Billings County in early July, is currently in detailed engineering, and will begin construction as soon as the air quality permit to construct is received from the State of North Dakota's Department of Health after the first of the year. The project has been funded to-date through the proceeds from the company's current offering of common stock, which is expected to be fully subscribed by the end of September 2016.
Meridian CEO, William C. Prentice, said, "Meridian interviewed a number of investment bankers, including major Wall Street firms, before selecting Brookline based on their strong command of the institutional market. Despite being a relatively new firm, Brookline distinguished itself in the expertise of its professional staff, its ability to immediately grasp the unique opportunities facing Meridian, and the innovative approach that Brookline will take in ensuring that the Davis refinery is capitalised in a timely and cost effective manner."
"Brookline Capital Markets is proud to be representing Meridian Energy Group in its fund raising activities, with respect to the Davis refinery," added Patrick Sturgeon, Managing Director of Brookline Capital Markets. "Meridian has assembled a world class management team with many years of experience, and has already accomplished many of the key milestones to move the project forward quickly. We believe that the Davis refinery will be a trailblazing facility in the region in terms of efficiency, production capability, product slate flexibility and minimal environmental impact."
Chad Hope, Meridian's Chief Financial Officer, had this to say, "Since joining Meridian in June, I have seen the company continue to align itself with not only the most prominent, but the most accomplished partners in their respective industries. Our recent partnership with Brookline Capital is no different. Brookline has made an immediate and substantial impact in assisting the company with both its capital and financing needs."
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/12092016/meridian-energy-selects-brookline-for-davis-refinery-project-financing-4066/