Mountain Express Oil Co. successfully completed a $205,000,000 debt financing; the proceeds of the transaction will be used to refinance the company’s existing credit facilities and will support the company’s growth objectives over the next several years.
The financing follows the company’s acquisition of West Hill Ranch in March 2021, which vertically integrated retail operations into Mountain Express’ scaled fuel distribution platform, creating a diversified portfolio of fuel distribution, retail operations, real estate and services segments.
The $205 million financing includes several new and existing lenders and was oversubscribed at closing, demonstrating strong demand for the company’s stated growth objectives. First Horizon Bank, which has been a partner with Mountain Express since 2016, led the syndicated transaction and served as lead arranger and administrative agent on the financing.
“We are incredibly excited to continue building upon our strategic partnership with the entire banking syndicate, especially the team at First Horizon who has supported us for many years,” said Lamar Frady, co-CEO of Mountain Express.
The financing provides additional funding for strategic growth opportunities as Mountain Express moves toward its goal of operating 100 retail locations by year-end in addition to its existing 600-plus fuel distribution locations.
“The flexibility afforded by our refinanced capital structure more appropriately aligns with our growth trajectory as we continue to build our distribution capabilities as well as diversify and invest in adjacent business lines,” added Turjo Wadud, who serves alongside Frady as co-CEO.
Founded in 2000 and based in Acworth, Ga., Mountain Express Oil Co. currently owns and/or controls more than 200 gas stations and provides fuel to more than 600 stations across the United States under several major oil and regional fuel brands. Looking ahead, the company is projected to own/control more than 300 stations, service nearly 800 locations, and operate nearly 100 convenience stores by year-end 2021.