The Customer
- The customer is a large, family-owned construction company with diverse operations across multiple disciplines.
- The business specializes in heavy civil construction, industrial projects, crane services, fabrication, and maintenance.
- The company operates a highly crane-intensive fleet that supports infrastructure and energy projects across the country.
The Challenge
- The company was experiencing a severe cash flow crunch due to delayed invoice payments and outstanding change orders from a top client.
- Its longstanding equipment line with Wells Fargo was converted into term debt after Wells, not acting as the senior lender, declined to extend further credit.
- Financial performance deteriorated in 2021 and 2022, with revenue, EBITDA, and debt service coverage significantly reduced due to low- or no-margin contracts taken on during the COVID downturn.
- To stay active during the pandemic, the company accepted non-core, low-margin work that negatively impacted profitability.
- Since then, the company exited underperforming contracts and refocused on its profitable core business segments, making it a compelling turnaround opportunity.
Done Deal
- First National Capital (FNC) structured three equipment financing transactions across four schedules over a 10-month period, totaling nearly $20 million.
- The first transaction was a $4.9 million crane sale-leaseback, which provided immediate liquidity to stabilize the company’s balance sheet.
- Shortly after, FNC funded $2.25 million for the purchase of two new cranes tied to a newly awarded wind farm contract, allowing the company to avoid using cash or seeking outside financing.
- Most recently, FNC arranged a $10 million bridge loan secured by cranes, two aircraft, and various unencumbered pieces of equipment, delivering additional working capital and flexibility.
