Trenching Services Company
ABOUT THE COMPANY
HQ Location: Southern United States
In Business For: 5+ Years
Annual Revenues: $50M+
Management: Family owned and operated, 20+ years of industry experience
Customer Base: Many large, highly rated corporate customers, including companies in oil & gas sector
Customer Concentration: 80% of total receivables due from their 7 largest customers, exposing them to additional risk.
Operational Restructuring: Due to oil & gas downturn, company suffered a significant drop in revenues. They successfully executed a multi-year cost cutting effort, and management demonstrated an ability to remain cash flow positive throughout the restructuring period.
Insufficient Availability: Company was seeing a resurgence in volume. Existing lender was unable to provide the additional financing needed to fuel company growth.
Existing Financing: Company had a good relationship with existing financing sources and management wanted to add a flexible lender to optimize their capital structure.
The Credit Junction worked closely with the company and its management to quickly craft a financing solution that met both their short and long term capital structure needs. The Credit Junction properly leveraged assets that were underutilized.