Daily News: December 8, 2017

Bibby Provides $7.25MM Revolver to Engine Recycler

Bibby Financial Services (BFS) provided a $7.25 million asset based revolving credit facility to a U.S.-based metal and aircraft engine processor and recycler. Composed of a line of credit, an equipment loan and a term loan against real estate, the ABL facility has already resulted in debt reduction by enabling the client to pay off an existing line of credit and term loans from its former bank.

The company purchases scrap engines and breaks them down to individual metal components, including precious metals, to be used in the manufacturing of other products. Its large smelting furnace requires regular maintenance, which is costly, so BFS had to structure a flexible facility to accommodate the expense.

In addition to debt reduction, the increased working capital will facilitate the purchase of additional scrap materials for processing and additional support of operations.

“This company does business overseas as well as domestically, so another advantage we offered was credit insurance to secure against international debtor issues,” said Ian Watson, CEO of BFS North America. “As trusted advisors to our clients, we feel it’s our responsibility to ensure that we help them cover all the issues that can pose a challenge to their business.”