CapRock Communications
Company Overview
CapRock
Communications provides outsourced satellite communications services to
the deep water oil and gas industry, the government, and other
businesses which operate in extreme locations. CapRock owns and
operates a global communications infrastructure, which includes
international teleports in the US, UK, Brazil, and Indonesia. CapRock
provides turn-key solutions that include equipment, installation,
bandwidth, and 24 X 7 technical support. CapRock satellite solutions
are designed to support an array of data networking, digital telephony,
broadband Internet access, and real-time video requirements.
Situation
CapRock
was founded in the early 1980s with a focus on the oil and gas
industry and later became a subsidiary of McLeod Communications, a
public telecommunications company. CapRock was producing consistent
cash flow, but was achieving low revenue growth due in part to limited
resources as a result of its corporate parent being in bankruptcy.
Petra joined a group of investors that backed the existing management
team including CEO Peter Shaper, to acquire CapRock from McLeod and set
out on a more ambitious growth plan.
Petra's Role
Petra
led an $8.0 million subordinated debt investment in support of the
acquisition. Throughout the investment Petra played a constructive role
in CapRock’s growth through Petra’s position on the board of directors
and compensation committee. Four years into its investment Petra
introduced CapRock to Wachovia Securities who successfully led the
company through a recapitalization transaction.
Results
Shortly
after the investment CapRock acquired the global satellite network
owned by Halliburton and later made two small acquisitions in Brazil
and Indonesia to solidify its global service offering. During its
investment CapRock’s revenue grew 35% per annum while EBITDA has grown
52% per annum. In 2006 CapRock completed a recapitalization transaction
valued at $200 million with ABRY Partners. The original management team
continues to run the company today.
