Petra Capital Partners

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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.

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