Thursday, March 26, 2015

Carlyle Buys Romanian Assets from Sterling Resources

Business Review reported:

Sterling Resources announced on Thursday that it has entered into the “Romanian Sale Agreement” to sell its entire Romanian business to Carlyle International Energy Partners (CIEP), an affiliate of The Carlyle Group

Carlyle's deal is with a financially stressed energy company:

The next such amortization and interest payment is due on April 30, 2015, but as previously reported the company does not expect to have sufficient funds to make the payment in full on that date.  As completion of the Romanian sale is likely to be after this date, the company is considering options to improve its short term liquidity position.

Which leads us to another way Carlyle takes over distressed energy assets, buying senior debt which becomes equity after default.  I sense gypsies, tramps and thieves of the PEU variety.

Update 6-19-15:  Carlyle closed on Sterling Resources.

Update 12-27-16:  Carlyle purchased Mazarine Energy in May 2016 and Mazarine announced it will buy 19 oil fields and 3 rigs from Romania's top producer OMV Petrom.

Update 9-1-21: reported:

Black Sea Oil and Gas (BSOG), a Romanian company backed by US investment fund Carlyle, could start gas deliveries from Romania’s Black Sea section at the end of this year when work on the Midia Gas Development project will be finalized.

The Carlyle Group purchased Sterling’s Romanian business in 2015 and set up a new company Black Sea Oil & Gas SRL.

Update 6-28-22:  Carlyle's Black Sea Oil and Gas wants greater tax breaks for the industry than passed by the Romanian government.