Mountain Ridge Capital and Great Rock Capital Team Up to Provide $75 Million Revolving Credit Facility for HOP Energy

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Jan 30, 2023, 08:45 ET

FRISCO, Texas, Jan. 30, 2023 /PRNewswire/ -- Mountain Ridge Capital ("Mountain Ridge") and Great Rock Capital ("Great Rock"), today jointly announced the closing of a senior secured credit facility for HOP Energy, LLC ("HOP"). Founded in 1995 and headquartered in White Plains, NY, HOP Energy is a market-leading home services provider serving ~90,000 customers across two primary areas: distribution of home heating oil and the installation and servicing of HVAC systems, heat pumps, and other critical non-discretionary home services. HOP Energy is majority-owned by Delos Capital.

The new credit facility refinanced the company's existing bank revolving line of credit and will provide additional liquidity to support the future growth expectations of the business. As non-bank senior debt lenders, Mountain Ridge and Great Rock were able to provide significantly higher availability and more overall flexibility than the previous bank arrangement. Mountain Ridge will serve as the Administrative Agent.

Craig Winslow, President and Chief Credit Officer of Mountain Ridge, noted "We built Mountain Ridge Capital on the basis of providing flexible and creative ABL structures with speedy execution. We are pleased to have accomplished all these objectives with this deal. HOP Energy makes an excellent addition to our growing portfolio as we look for similar sized transactions in the future."

"The strong relationship with Delos Capital, plus HOP's dedication to customer satisfaction, has sparked the company's ongoing business growth," said Stuart Armstrong, Chief Executive Officer of Great Rock Capital. "The credit facility we executed with our lending partner, Mountain Ridge, maximizes the liquidity available to HOP and will provide them with the increased financial flexibility to support their future growth initiatives."

Will DeBruyn, Partner of Delos Capital remarked, "We are pleased to have two exceptional new partners to aid in our plans to grow HOP over the coming years, which would not have been achievable without the thoughtful perspectives that Mountain Ridge and Great Rock brought to the company and its capital structure."

About HOP Energy, LLC
Headquartered in White Plains, NY, HOP Energy is a leading distributor of heating oil, propane and other petroleum products and a premier provider of HVAC and other related services in nine states in the Northeast and Mid-Atlantic.

About Mountain Ridge Capital
Mountain Ridge Capital provides highly customized asset-based revolvers and term loans to middle-market businesses and utilizes an industry agnostic approach to consider advancing against all types of collateral. Mountain Ridge targets lending to privately-held, family-owned and private equity-backed businesses requiring liquidity to support business transitions, including turnarounds, restructuring, acquisitions and changes in ownership or control. The Mountain Ridge platform was created in partnership with Arena Investors, LP (www.arenaco.com) in response to the growing demand for non-bank debt financing, which can be secured without unnecessarily slow and cumbersome bank committees, extended due diligence cycles, or lengthy legal processes. MRC offers borrowers quick turnaround times and has a team of experts that understand all types of collateral, not just traditional A/R and inventory, which results in higher advance rates and more overall liquidity as compared to many traditional bank products. See www.mountainridgecap.com for more information.

About Great Rock Capital
Great Rock Capital is an asset-focused commercial finance company specializing in serving the needs of middle market companies with a wide variety of secured lending products. Great Rock Capital provides fast, flexible, and creative financing solutions to maximize its customers' liquidity to enable them to better execute their business plans. To learn more, visit www.greatrockcapital.com.

About Delos Capital
Delos Capital is a lower middle market private equity firm specializing in management buyouts, recapitalizations, and growth investments. For more information, visit: www.deloscap.com.

Contacts:
Mountain Ridge Capital
Bill Drmacich
bill.drmacich@mountainridgecap.com

Great Rock Capital
Jenn Cronin, Managing Director
cronin@greatrockcapital.com

SOURCE Great Rock Capital