Customer
- The client is a family-owned silica sand company serving the oil & gas and LNG sectors.
- The business experienced rapid growth within just 2.5 years of founding.
- Due to its early-stage status and niche market, it had no established lending relationships.
Challenges
- The company relied on a small, owned dredge and leased additional equipment from a competitor.
- To scale operations and eliminate leasing costs, they needed a significantly larger dredge.
- Management preferred to conserve capital for other high-ROI growth initiatives.
- The lack of a senior lending relationship and exposure to a volatile sector made financing difficult.
- The dredge purchase involved high upfront costs, milestone payments, and substantial soft costs such as transport and installation.
Done Deal
- FNC extended a $10 million equipment line of credit tailored to current and future capital equipment needs.
- We reimbursed the client for deposits and milestone payments already made.
- We financed the $4.6 million balance, including all soft costs related to equipment setup and logistics.
- The remaining credit line capacity was left available to support additional purchases, such as wash plants and infrastructure for expansion.
