Mammoth Energy Services’ aviation subsidiaries, Cobra Aviation Services and Leopard Aviation, entered into a loan and security agreement with Bank7 providing for up to $58 million of senior secured term loans. The company expects to use proceeds from the facility to fund the acquisition of additional aviation assets.
The facility consists of a $25 million term loan A and a $33 million term loan B, each of which may be drawn during the 60-day period following closing. Advances under term loan B are subject to certain conditions. The loans bear interest at a floating rate, amortize monthly beginning in January 2027 and mature in October 2030. The facility is secured by the borrowers’ aviation assets and is guaranteed by Mammoth. No amounts were drawn at closing.
“This facility is an important step for our aviation platform,” Mark Layton, chief financial officer of Mammoth, said. “As of September 30, the total cost of our aviation portfolio was approximately $134.9 million, which had been funded without debt. Our aviation assets are well suited to asset-backed financing. This facility allows us to add prudent leverage and fund the next phase of fleet growth while preserving liquidity. We appreciate Bank7’s support.”
