nFusion Capital provided a $20 million asset-based facility to a provider of services and solutions for intelligent transportation systems in North America.
The client offers a suite of products and services covering the entire value chain by combining advanced sensors, surveillance systems, telecommunications technologies and processing, including software for the all-electronic tolling market.
The client’s parent company, which is based outside of North America, sought a lender to capitalize the client with debt for tax and non-tax reasons. The client required a sufficient line of credit to fund its operating needs and large multi-year projects, which required a substantial upfront investment to pay staff and purchase materials. The company was drawn to nFusion Capital because of its understanding of the complexities of structuring and documenting the loan and advances, its willingness to lend against progress billings and other asset categories in the United States and Canada, and its scalable financing.
The external funding from nFusion Capital eliminated the need for the foreign parent company to make additional equity investments in the company and provided availability using the company’s assets in the United States and Canada that were sufficient to meet its ongoing capital needs.
“The strength of this transaction came from our full team working arm-in-arm right from the beginning,” Jesse Baer, senior vice president at nFusion Capital, said. “It was a complex deal with a lot of moving parts, but our underwriting, portfolio and executive teams worked to ensure the most competitive structure for a deal that was extremely sought after in the private lending industry.”
