Strong Equity Support Avista team has an intimate i knowledge of the offshore drilling business Avista s Co-Managing Partner, Steve Webster, founded Falcon Drilling and served at its CEO and R&B Falcon prior to its merger with Transocean in 1999 Steve Webster has made a number of investments in both Gulf of Mexico exploration and production companies as well as global offshore drilling equipment operators such as Hercules Offshore, Reading & Bates, and Peregrine Oil & Gas and Scorpion Drilling Avista remains steadfast in its support for Spartan and is very enthusiastic regarding both the improvements at and opportunities for the company
Avista Capital Partners Overview Avista was formed in July 2005, as a spin out from Credit Suisse, with the core Energy, Healthcare and Media investment teams from the former DLJ Merchant Banking Partners ( DLJMB ) franchise Avista Capital Partners I has closed investments in 20 portfolio companies and committed approximately $2.0 billion to the companies In 2008, Avista Capital Partners launched its second fund with a targeted fund size of $3.0 billion; Avista Capital Partners II has invested in six portfolio companies to-date representing capital commitments of over $700 million Over the past 10 years (including tenure at DLJMB), the Avista Energy team has dli deliveredd a consistently it tl superior investment ttrack record Approximately $3.0 billion of equity invested in 25 companies Broad energy mandate allocated to E&P, Oilfield Services, Midstream and Power Generation Realized cash return of 3.0x invested capital and an IRR of approximately 70% Flexible investment mandate with target equity investment size of $100 - $400 million
Avista Capital Partners I Energy Investments Fund I Energy Investments Net Commitment Portfolio Company Description ($ million) Investment Thesis / Comments Domestic Oilfield Service $44 Balanced operations (oil / gas), compelling valuation, cash flow growth, stable production base Gulf of Mexico Shallow Water Driller $64 Niche player in consolidating U.S. Gulf market, no new direct supply threat Western Europe E&P $50 Developing basin plays, increased worldwide exploration spending, option value, opportunity to participate in development activities Deepwater Driller $118 Secular growth of deepwater, term contract base, excellent relationship with Shell, Bullygrowth strategy, newbuilds fully financed, "structural" protection International Geophysical Data Contractor $122 Increase in worldwide exploration spending, consolidating and overlooked niche, compelling valuation, "structural" protection through convertible preferred Rockies E&P $122 Proven management team, previous success with identical strategy, natural gas resource play with low geological risk Gulf Coast E&P $92 Proven management team, attractive opportunity set supported by 3-D seismic, good mix of exploration and development Gulf of Mexico E&P $50 Proven management team, pursuing acquisition opportunities in U.S. Gulf as public companies exiting, shorter reserve life properties p produce high IRR's
Avista Energy Industry Executives Steve Webster John Huff Gerhard Kurz Trevor Turbidy Has served as President and Co- Managing Partner of Avista since its formation Formerly served as Chairman of Global Energy Partners at DLJ Merchant Banking Founded Falcon Drilling in 1988 with $300,000 Falcon completed an initial public offering in 1995 at a valuation of approximately $250 million and prior to its merger with Reading & Bates in 1998, Falcon had achieved a market capitalization of approximately $1.6 billion Served as CEO of Falcon and R&B Falcon prior to its merger with Transocean in 1999 Has co-founded and/or was a lead investor in numerous successful ventures in the energy sector including Carrizo Oil & Gas, Grey Wolf, Hercules Offshore, Laredo Energy, Peregrine Oil & Gas and Union Drilling Formerly President and CEO of Oceaneering, a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry Under his 20+ years of leadership, Oceaneering was transformed from primarily a diving company to a high technology provider of products and services In 1987, Oceaneering was recapitalized, returning 40x the offering price and 160x the value from when Mr. Huff started at the company the year before Prior to his appointment at Oceaneering was managing partner of Falcon Partners, an investment banking group From 1972 to 1986, held positions at Western Oceanic, an offshore drilling contractor, with the last six years spent as Chairman and President Former CEO of Seabulk International, a former DLJMB portfolio company While at Seabulk drove a twofold increase in EBITDA through improved operational performance and expansion into new business segments Seabulk merged with Seacor Holdings Inc. in 2005 at a share price representing an increase of more than 200% over the price when Mr. Kurz took the helm Joined Seabulk following a 36- year career at Mobil Corporation where he held positions of increasing responsibility in logistics, Middle East planning and marine transportation, with the last 11 years spent as President of Mobil Shipping and Transportation Company Former CEO, CFO and Chief Restructuring Officer of Trico Marine Services During his five year tenure led the successful turn around of the company from a financially distressed Gulf-oriented operator to a well-capitalized internationally focused organization During tenure value of stock price increased over 380% from reorganization value due execution of international growth strategy Prior to this role served for over ten years as an oilfield service focused investment banker for Credit Suisse and DLJ Serves as Director of Spartan Offshore, Celtique and Manti Avista s s Energy Industry Executives Provide a Broad Array of Diverse Experience and Relationships in the Energy Industry.
Avista Capital Partners II Energy Investments Fund II Energy Investments Gross Commitment Portfolio Company Description ($ millions) Investment Thesis / Comments ACP Marcellus Marcellus Shale JV with Carrizo $300 Unique ability to partner with a proven operator of shale gas development to develop Marcellus Shale formation International E&P $100 Strong European natural gas fundamentals; North Sea transition from majors to small independents; development of stranded gas fields with little risk South Texas E&P $200 Proven management team, previous success with identical strategy, gas resource play with low geological risk U.S. Gulf of Mexico E&P $350 Proven management team, opportunities in U.S. Gulf with public companies exiting, high IRR's Offshore Drilling Company Deepwater Driller $80 Deepwater is capacity constrained
Avista Fund I Current Healthcare Investments Since Avista s first close on its inaugural fund in May 2006, the Company has completed seven investments in the healthcare industry Investment Description TEV (Aug. 2008) Global leader in the development, manufacturing, marketing and sale of products for advanced wound care, ostomy and acute fecal incontinence Announced the tack-on acquisition of Unomedical, a provider of single-use hospital medical devices and infusion sets for diabetes patients (closed September 2008) $425 million investment in spinout from Bristol-Myers Squibb $4,080 million (Feb. 2008) Leading supplier of fluid management and venous access medical devices $425 million $180 million controlling investment in spinout from Boston Scientific Supplier of medical imaging products for nuclear and ultrasound cardiovascular diagnostic imaging procedures (Jan. 2008) $180 million controlling investment in spinout from Bristol-Myers Squibb $525 million (Aug. 2007) Leading global distributor of equipment and consumable supplies to the laboratory sector $110 million minority investment alongside Madison Dearborn Partners $3,775 million (April 2007) Leading specialist provider of contract biologics safety testing and niche toxicology testing $82.5 million controlling investment in spinout from Invitrogen $210 million (Dec. 2006) European mid-sized specialty pharmaceutical company $8,276 million $138 million equity investment to support the acquisition of Altana Pharma AG (Sept. 2006) Medical waste removal and destruction company servicing hospitals, healthcare clinics and other generators of medical waste $50 million commitment to support tack-on acquisitions N/A
Avista A Value Added Partner Efficient, creative and flexible investment approach able to move quickly Significant domain knowledge with industry focus Value-added orientation with an operating perspective Proven ability to partner with superior management teams Expertise in structuring and completing complex transactions Patient, long-term investors, focused on: The Business Support portfolio companies in value creation process Add-on acquisitions / divestitures Operational efficiency and cost savings Strategy refinement Financings and incremental equity investments