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

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THE CHALLENGES

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. 

Challenges
 

 

THE SOLUTION

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. 

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