Newman Rates US PEX LLP Senior Secured Offering ‘AA+’ & Values Business at US $437 Million
New York (PRWEB) October 09, 2014 -- Newman Rating & Valuation Agency or "Newman" has assigned an "AA+" rating to the US PEX LLP proposed 10-year Senior Secured Notes offerings or "Notes."
Proceeds of US $75 million from 10.50% Notes Due 2024 will be invested in acquiring land for drilling crude oil in the oil rich regions of Ohio and for business expansion.
Newman, as per its internal analysis and due diligence done on US PEX LLP, believes that the business has tremendous growth potential. The Notes will be offered to US-based accredited investors in the month of November, 2014.
Ohio crude oil production is at a current level of 677.00K, down from 686.00K last month and up from 413.00K one year ago. This is a change of -1.31% from last month and 63.92% from one year ago.
Newman has valued US PEX LLP at US $437 million for any proposed private placements / investments convertible into equity or for general equity stake dilution. The enterprise valuation is on the basis of evaluated discounted cash flow and the earning capabilities of US PEX LLP.
Key Rating Drivers:
- US PEX LLP posses strong management team to execute the proposed business strategies.
- US PEX LLP posses the right product mix.
- US PEX LLP is focusing on the oil rich regions of Ohio which has shown over 250% increase in the production in the last 5 years.
- The drilling technology being used by US PEX LLP is cost effective and has minimum recurring cost.
- US PEX LLP has no long term outstanding debts.
- Newman believes that crude oil price will increase 7-12% amid political disturbance in Gulf countries which will unswervingly benefit the crude oil producers.
Satish Paul, Newman Ratings, http://www.exhilway.com, +1 (302) 261-2008, [email protected]
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