Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) entered into a definitive agreement to acquire Mobile Energy Rentals LLC for $200 million on July 9, 2024. Consideration consists of $60 million of cash and the issuance of approximately 16.5 million shares of Solaris Class B common stock. .

At closing, Solaris will fund $60 million of cash to Mobile Energy Rentals LLC?s shareholders and reimburse Mobile Energy Rentals LLC for certain deposits and payments made for the purchase of additional turbines and ancillary equipment. Solaris has secured committed financing from Banco Santander, Texas Capital Securities, and Woodforest National Bank in the form of a $300 million 364-day senior secured bridge term loan facility. Solaris expects to secure permanent financing prior to closing, and is currently exploring numerous financing avenues, including longer duration term debt and equipment financing.

Solaris intends to use a combination of debt financing and free cash flow generated from the current Solaris business to fund the cash due at closing, as well as the acquisition of approximately $308 million of turbines on-order to be delivered through the end of the third quarter of 2025 Concurrent with the closing of the transaction, Solaris Oilfield Infrastructure, Inc. (NYSE: SOI) intends to rename to Solaris Energy Infrastructure, Inc. (NYSE: SEI). Mobile Energy Rentals LLC?s founders and management team, will join Solaris Oilfield Infrastructure, Inc. post-closing. Solaris expects second quarter revenue to be between $70 million and $75 million and Adjusted EBITDA to be between $20 million and $21 million for the second quarter of 2024.

During the second quarter, Solaris repaid $14 million of debt, ending the quarter with $11 million of net debt. Solaris Oilfield Infrastructure, Inc.?s Board of Directors has approved the Mobile Energy Rentals LLC acquisition. The transaction is subject to a shareholder vote, receipt of regulatory approvals, and other customary closing conditions.

The transaction is expected to close by the end of the third quarter of 2024. Michael Marek, Jackson A. O?Maley, Doug McWilliams, Mark Holmes, Lina Dimachkieh, Marisa Giles, James Leader, Kara Kuritz, Ryan Will, Sean Becker and Scot Dixon of Vinson & Elkins LLP acted as legal advisor to Solaris Oilfield Infrastructure, Inc in the transaction.