The Customer
Private Equity-backed Waste Hauler with over $500 Million in revenue
The Challenge
- Multiple company acquisitions over the previous 12 months meant underwriting “muddy” financials.
- Reliance on one-time EBITDA add-backs to hit financial covenants.
- Recent increase in leverage and upcoming debt maturities
- Covenants are in place limiting their ability to take on additional debt.
- Major restructuring in the waste management space with potential to lose large contracts.
- PE Group is seeking to exit in the next 24 months.
- Annual capex roughly 25% of revenue
- Vendors needed to be paid ASAP to get trucks titled and on the road.
Done Deal.
- Structured the transaction to where it was off balance sheet to avoid busting covenants while also reducing any impacts to EBITDA.
- Provided Pre-payment terms at various months throughout the lease to give flexibility in case of an Exit or Sale by the PE Group.
- Provided over $50MM in capex finance with additional capacity still available.
- Customer visits and deep understanding of the industry helped First National Capital get comfortable when others were not able to.
Rapid Expansion
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