Pickering Energy Partners Advises ProFrac’s Audit Committee on Terms of Preferred Equity Investment into the Company

Rhea-AI Summary

ProFrac Holding Corp. receives a $50 million preferred equity investment from its largest shareholder, the Wilks Family. The investment will optimize the company's capital structure and maximize the value in Alpine Silica.

Positive

• ProFrac Holding Corp. receives $50 million preferred equity investment from largest shareholder, optimizing capital structure
• Investment will maximize value in Alpine Silica, industry's largest multi-basin proppant producer

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Pickering Energy Partners (“PEP”) advised the Audit Committee of ProFrac Holding Corp.’s (NASDAQ: ACDC) (“ProFrac” or the “Company”) Board of Directors on the terms of the $50 million in preferred equity investment (the “Preferred Equity”) by ProFrac’s largest shareholder, the Wilks Family. The Preferred Equity was issued as perpetual preferred equity securities convertible into ProFrac Class A common stock at a conversion price of $20.00 per share. In addition, the Preferred Equity accrues interest at an 8% annualized rate, payable quarterly and payment-in-kind (“PIK”). The investment optimizes the capital structure of ProFrac as it looks to maximize the value in Alpine Silica, the industry’s largest multi-basin proppant producer.

About Pickering Energy Partners

Pickering Energy Partners is an energy-focused financial services platform. Our expertise spans decades across the entire energy landscape. We have deployed over $16 billion across all energy sub-sectors. We are, at our core, trusted energy advisors, investors, and partners alongside our clients. Headquartered in Houston, Texas, PEP delivers an experienced, opportunistic team that aims to provide guidance and long-term value for clients while having a positive impact on the companies and communities that PEP invests in. For more information, please visit www.PickeringEnergyPartners.com.

Pickering Energy Partners LP (“PEP”) is an SEC Registered Investment Advisor. Affiliated PEP Advisory LLC (“PEP BD”) is a registered broker-dealer, member FINRA/SIPC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231024143530/en/

Jason Martinez, Managing Director

jmartinez@pepadvisory.com

+1.713.930.0368



For media inquiries, contact:

Jennifer Petree / Abbey Sellers

pr@petreepartners.com

+1.713.269.3776

Source: Pickering Energy Partners

FAQ

What is the investment amount received by ProFrac Holding Corp. from its largest shareholder?

ProFrac Holding Corp. received a $50 million preferred equity investment from its largest shareholder, the Wilks Family.

What will the investment optimize for ProFrac Holding Corp.?

The investment will optimize the capital structure of ProFrac Holding Corp.

What is Alpine Silica?

Alpine Silica is the industry's largest multi-basin proppant producer.

Who is the largest shareholder of ProFrac Holding Corp.?

The largest shareholder of ProFrac Holding Corp. is the Wilks Family.