Crestline Investors, Inc. (“Crestline”) closed a $75.0 million first lien term loan of which $52.0 million was funded at close (the "Term Loan") for Meritum Energy Holdings (“Meritum” or the "Company"), a leading distributor of propane and refined fuels across six states operating under the brand Pico Propane in the United States. Crestline served as the Administrative Agent and sole lender for the transaction.
Founded in 2015 and headquartered in San Antonio, Texas, Meritum Energy Holdings has become a prominent player in the fuel distribution market. Meritum has completed 13 acquisitions and organically entered numerous markets and now distributes propane, refined fuels and compressed natural gas (“CNG”) across Texas, New Mexico, Louisiana, Florida, Virginia, and North Carolina, operating 21 plant locations. Meritum serves a diversified and repeat customer base across various end markets, including residential, commercial, power generation, industrial and agricultural sectors.
“We are thrilled to partner with Crestline and Tejas Investment Partners to execute this significant transaction," said Chris Hill, CEO at Meritum Energy Holdings. "This transaction provides Meritum with the flexibility and capital needed to continue our growth strategy, including strategic acquisitions, supporting our organic sales growth efforts and expanding into high-value fuel markets like compressed natural gas and distributed power. We appreciate Crestline’s ongoing support and commitment to our vision, and we look forward to building on our strong foundation as we enter this exciting new phase of growth. The additional capacity and flexibility in Crestline’s facility will enable us to quickly execute on acquisitions and organic growth opportunities."
“Crestline is excited to continue our relationship with Meritum, which began in 2019, with this new and expanded facility, supporting their efforts to focus on acquisitions and high-return organic growth projects. We believe the flexibility in our credit structure will allow Meritum to act quickly on opportunities. Meritum’s solid foundation, combined with its strategic initiatives, positions the Company for long-term success, and we are confident in their ability to drive continued growth.” Alfonso Ramirez, Managing Director at Crestline, added.
In addition to the Crestline term loan, Meritum raised $35 million in common and preferred equity with Tejas Investment Partners. “Partnering with Crestline has been instrumental in our ability to execute this recapitalization and position Meritum for future growth,” said Todd Self, Founder at Tejas Investment Partners. “Their deep understanding of our business and relationship with management at Meritum, along with the tailored financing solutions they provide, has been essential as we enter this exciting next chapter in the Company’s journey.”
About Crestline Investors
Crestline Investors, Inc. is an alternative investment management firm founded in 1997 and based in Fort Worth, Texas, with affiliate offices in London, New York, Toronto, and Tokyo. The firm has approximately $20 billion in assets under management (as of September 30, 2024), and is specialized in private credit strategies, offering a diverse range of investment solutions across its direct lending, opportunistic, and portfolio finance platforms. For more information, visit www.crestlineinvestors.com.
About Tejas Investment Partners
Tejas Investment Partners is a private investment firm making control and non control investments in lower middle market companies in Texas. Our team has spent the past two decades partnering with Texas businesses to reach their full potential. For more information, visit www.tejasinvestmentpartners.com.
About Meritum Energy Holdings
Meritum Energy Holdings is a leading distributor of propane and refined fuels, serving diverse customers across six U.S. states: Texas, New Mexico, Louisiana, Florida, Virginia, and North Carolina. The Company operates 21 plant locations under the Pico brand and focuses on providing essential energy products to a wide variety of end markets, including residential, commercial, industrial, oil field and agricultural. Meritum's commitment to operational excellence and sustainable energy solutions has made it a trusted partner for thousands of customers. For more information, visit www.meritumenergy.com and www.picopropane.com.
This financial promotion is issued by Crestline Management, LP and Crestline Europe, LLP (together "Crestline"). Crestline Europe, LLP is authorized and regulated by the Financial Conduct Authority (FCA). The material is not intended to be a formal research report and nothing in this presentation should be interpreted to state or imply that past results are an indication of future performance. Any opinions expressed herein are our current opinions only. There can be no assurance or guarantee that Crestline's investment strategy will achieve its stated goal. All information provided in this presentation is for informational purposes only Crestline accepts no liability for loss arising from the use of this material. In the United Kingdom, this communication is being made only to, or directed only at, persons who are: (i) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FP Order”); ii) high net worth companies and certain other entities falling within Article 49 of the FP Order; or (iii) any other persons to whom such communication may lawfully be made. It must not be acted, or relied, upon by any other persons.
