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Direct Investment  + SPACs  | 
Hicks Equity-Backed Oilfield Services Firm DTI to Merge with ROC Energy Acquisition in $319M SPAC Deal 

Hicks Equity-Backed Oilfield Services Firm DTI to Merge with ROC Energy Acquisition in $319M SPAC Deal

ROC Energy Acquisition Corporation (ROC), a special purpose acquisition company (SPAC), and Drilling Tools International Holdings have agreed to merge in a deal that will enable the oilfield services provider to become a public company.

The deal values DTI, which is majority owned by Dallas-based Hicks Equity Partners, at approximately $319 million. The transaction is expected to provide net cash proceeds of up to about $217 million, including approximately $209 million held in trust before potential redemptions and $45 million of private investment in public equity.

Hicks Equity Partners and other existing DTI shareholders will reinvest over 95% of their equity holdings into the combined company.

There has been underinvestment in drilling, but an even bigger one for equipment, which means it will take quite a drastic oil demand cut before oil-field service providers like DTI take a hit. The risk that oil-field services demand will decline appears lower than the possibility that oil demand will fall.

Led by Wayne Prejean, Houston-based DTI’s customers include energy producers Chevron, ConocoPhillips and Occidental Petroleum Corp, as well as large services players such as Baker Hughes Co and SLB.

Jefferies LLC is serving as capital markets advisor and private placement agent to ROC. Kirkland & Ellis LLP is providing legal counsel for Jefferies LLC. EarlyBirdCapital, Inc. is serving as financial advisor to ROC Energy Acquisition Corp.

Bracewell LLP is serving as legal advisor to Drilling Tools International. Winston & Strawn LLP is serving as legal advisor to ROC.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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