nFusion Capital provided a $4 million asset-based lending line of credit to Performance Energy Services, a Colorado-based energy service construction company that supports the onshore and offshore energy markets. As a partner to oil and gas companies, Performance Energy Services provides fabrication, industrial construction, instrumentation and electrical, mechanical, and specialty services.
Performance Energy Services hired 120 new employees and was scaling up for growth from $60 million to $100 million in revenue per year prior to the COVID-19 pandemic. When shutdowns brought the oil and gas industry to a halt, the company’s revenue fell to $20 million. As the company traversed the next few years, its bank became unwilling to extend any additional credit and was trying to wind down the company’s line. To address the issue, nFusion Capital developed a lending structure to enable Performance Energy Services to continue operations, meet immediate payroll requirements and invest in expansion.
“Our former bank line of credit didn’t provide sufficient working capital for our company to operate and grow,” Joe Hettinger, founder of Performance Energy Services, said. “nFusion’s team was able to think outside the box and moved quickly to craft a financing solution that worked well for us, using additional assets to serve as collateral for a larger line of credit. They met hard deadlines in a compressed timeframe that was extremely challenging. They came through, delivering on what was promised and made it happen. They showed trust and faith in us that we would do what we said, and we are very grateful.”
“We had faith in Performance Energy Services’ leadership team and knew they just needed a sufficient cash runway to executive a business turnaround and return the company to stability,” Jesse Baer, senior vice president at nFusion Capital, said. “Our funding and patient capital approach will provide the breathing room for them to executive their plan. It was a truly a team effort by nFusion. We moved quickly through our due diligence and underwriting processes given their urgent need for liquidity and creatively structured a transaction to increase their borrowing availability to help ensure their success.”
