The Customer
Upstream Oil & Gas, Forging, and Machining Company
The Challenge
- The company had been recovering from the COVID impact, below average EBITDA, and compressed EBIT
- The company’s largest business segment was in O&G drilling, a highly volatile industry
- The company was coming up against a debt maturity, which had significant implications if not paid off in time
- Due to corporate structure, the company required a solution that mitigated tax and/or ownership implications
- Other lenders had declined their transaction
Done Deal.
- FNC approved a $35,000,000 debt refinance – secured by high-spec drilling rigs
- FNC worked alongside an ABL lender who also provided additional liquidity for the company
- FNC believed in the management team and its ability to execute its business plan
- FNC was able to drastically reduce its monthly debt obligations, provide fixed-rate financing, and allow the company to improve its cashflow better
Business Cycle Volatility
Wider credit appetite for companies in all phases of the business cycle.
