The customer is a leading super-regional provider of outsourced services to natural gas and electric utilities. They offer a comprehensive suite of services with best-in-class operational capabilities and results. They provide professional, superior, project execution to large investor-owned utilities, cooperatives, and municipalities.
New management needed to better understand equipment fleet utilization. With the high costs of short rental agreements applied to long term use and re-evaluating under-utilized assets, there were efficiency opportunities to capitalize on. But with EBITDA-based covenant restrictions limiting the ability to act on these capital equipment needs, the company needed a lending partner with the structuring expertise to get the deal done.
First National provided a variety of solutions including flexible operating lease terms and structures that addressed each business need, asset type, age and usage. Ultimately, the equipment leasing solutions offered significantly improved the Company’s EBITDA by reducing equipment-related annualized expenses by double digit percentages. The first operating lease for used bucket trucks totaled $287,000 and has grown into a $70+ million relationship spanning 5+ years and the customized leasing of thousands of assets.