BizCap Secures Multi-Tranche Credit Facility for Leading Provider of Industrial Preservation & Cleaning Services to Navy, Military & Commercial Marine Industry
The company provides heavy duty cleaning services and surface treatments to military and commercial agencies in the marine industry, including the largest naval fleet installations in the world. They specialize in the removal and replacement of non-skid surfaces, and the efficient cleaning and preservation of tanks, bilges and piping systems on US Naval and Coast Guard vessels located in the major shipyards of San Diego, Washington, and Florida.
Due to the economic downturn and constrictions in government industries, revenue sources were impacted. The decline in income combined with high fees to the incumbent lender, lead to working capital constraints and a high debt load which limited the company from bidding on new work.
Business Capital (BizCap) was able to understand the complex nature of the client’s highly specialized industry, their situation and restructuring plans to increase financial profitability. BizCap structured a combination $1M Accounts Receivable line of credit and $500MM term loan credit facility utilizing two lenders targeted for their proficiency in each asset category. The overall cost of capital was cut in half and significantly increased the advance rates on the collateral. This allowed the company to take advantage of pricing incentives, realize savings, increase profits and thereby be awarded several long-term contracts securing business growth for the future.
“Whether a client is in need of a large multi-million dollar credit facility or a smaller one, Business Capital works equally hard to overcome challenges and get each client funded quickly. In a risk averse environment, we deliver intelligently structured solutions at the best cost of capital. In this particular transaction, these attributes positioned our client to have their most profitable year ever!”
Chuck Doyle, Managing Director, Business Capital