The Customer
- Established Port Operator and general contracting stevedore in Southern California.
- Engages in stevedoring and marine terminal operations on behalf of major shipping alliances.
- Leading provider of comprehensive solutions for East Asian shipping companies.
- Services include:
- Lifting containers on and off customers’ vessels docked at the Port’s berths.
- Coordinating the truck and rail transport of containers.
- Short-term storage and care of these containers in the company’s facility.
Challenge
- The company faced multiple one-time extraordinary events that disrupted normal shipping volumes and cash flow.
- Challenges included industry-wide slowdowns driven by COVID-19 disruptions and union labor contract negotiations that significantly hindered operational capabilities.
- With the return of historical norms from contracted shipping alliances, the company required an immediate working capital/liquidity solution to facilitate a rapid ramp-up in business.
Done Deal
- FNC approved and funded $15,000,000 to the company’s balance sheet, with $5,000,000 within 30 days and $10,000,000 within 60 days to meet immediate requirements.
- First National provided a multi-schedule, master lease that allowed the client to match the lease term with the useful life of different categories of equipment.
- The speed and efficiency of the FNC underwriting process business allowed focus on operations rather than a one-time working capital requirement.
- FNC delivered by responding quickly and maintaining a customer-centric approach through a transaction that traditional lenders would have found difficult.
