HOUSTON - Solaris Energy Infrastructure, Inc. (NYSE:SEI), a provider of equipment-based solutions for power generation and raw materials management, announced the completion of its acquisition of Mobile Energy Rentals LLC. The transaction, which positions Solaris for growth across multiple markets, includes the finalization of a new $325 million senior secured term loan and an upcoming $75 million revolving credit facility.
The new credit arrangements replace a $300 million secured bridge term loan that was initially secured at the announcement of the acquisition. Solaris expects to be undrawn on the revolving credit facility after its finalization.
In addition to the acquisition, the company has completed its renaming from Solaris Oilfield Infrastructure (NYSE:SOI), Inc. to Solaris Energy Infrastructure, Inc. The company's Class A Common Stock, which ceased trading under the ticker symbol "SOI" at the close of trading today, will begin trading under the new symbol "SEI" starting September 12, 2024.
Chairman and CEO of Solaris, Bill Zartler, expressed enthusiasm about the acquisition, noting the experienced team and contracted base business that MER brings to the table. He emphasized the anticipated growth and diversification in cash flow streams as a benefit to customers, employees, and shareholders, and highlighted the potential for enhanced shareholder returns and pursuit of growth opportunities.
Solaris Energy Infrastructure, Inc. serves various U.S. end markets, including energy, data centers, and commercial and industrial sectors. The company's headquarters are located in Houston, Texas. This announcement is based on a press release statement.
InvestingPro Insights
As Solaris Energy Infrastructure, Inc. (NYSE:SEI) forges ahead with its recent acquisition and credit arrangements, investors may be curious about the company's financial health and market position. According to InvestingPro data, SEI currently holds a market capitalization of approximately $278.39 million. Despite a challenging period, the company has seen a significant price uptick over the last six months, with a 135.29% total return, highlighting investor confidence in its growth potential.
One of the InvestingPro Tips for SEI points out that the company holds more cash than debt on its balance sheet, which could provide a cushion against market volatility and enable further strategic investments. Additionally, SEI's liquid assets exceed its short-term obligations, suggesting a solid liquidity position that may support operations and the servicing of any short-term debt.
However, it's worth noting that SEI is currently trading at a high Price / Book multiple of 11.18, which could indicate that the stock is priced optimistically relative to its book value. This, combined with a negative P/E ratio of -48.1, reflects the company's current lack of profitability over the last twelve months. Investors looking for dividends might also need to consider that SEI does not pay a dividend to shareholders at this time.
For those interested in a deeper dive into Solaris Energy Infrastructure's financials and market performance, InvestingPro offers additional tips and analysis to help investors make informed decisions. There are 9 more InvestingPro Tips available for SEI at https://www.investing.com/pro/SEI, providing valuable insights into the company's long-term returns, gross profit margins, and more.
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