First National Capital Case Study


Located in Indiana, the company earns more than $200 million offering heavy civil construction services focused on renewable energy, commercial, industrial & civil construction, and maintenance services.


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 state of this “turnaround” and unsettled litigation, the credit profile was extremely challenging.


Despite the client’s distressed position, First National proposed a hybrid capital lease structure that gave end of term flexibility, excellent cash flow, and a cost of capital substantially more affordable than the competition.

  • 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.

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