The Customer
Located in North Carolina, the company earns more than $200 million offering heavy civil construction services focused on renewable energy, commercial, industrial & civil construction, and maintenance services.
The Challenge
- Five new cranes we required to support recently awarded and highly profitable wind development projects.
- Coming off a challenging prior year of large losses related to failed projects in their Canadian operation, the balance sheet was upside down, they were facing substantial litigation, and were in the initial stages of restructuring most of their operations.
- Given the very early stage of this “turnaround” and unsettled litigation, the credit profile was extremely challenging.
Done Deal.
- First National was able to fund all 5 cranes despite the company’s recent financial performance.
- First National was also able to approve additional capacity, allowing them to meet their CAPEX requirements for the next 12 months.
- First National did not introduce financial covenants that would conflict with the company’s current revolving line of credit and term debt facilities.
- The structure of the lease allowed for both return and purchase at the determined values…essentially the best of both worlds.
- First National was able to go deeper than the numbers and let the story make the difference, positioning the company for a successful turnaround.
Business Cycle Volatility Case Studies
When economic winds or business cycles turn against your company and creative capital is needed to turn performance around, trust First National. Explore more case studies of companies facing these challenges by clicking below.
