Utica Leaseco closed $20 million of a $50 million lease facility for the manufacturer of a high-tech proprietary energy product. The lease is secured by machinery and equipment and other intangible property.
The manufacturer, which closed a similar, smaller lease facility with Utica in 2017, has been engaged in significant research and development activities to perfect its manufacturing process as well as its product line. The $50 million lease facility provides the manufacturer with the capital required to acquire the highly automated manufacturing equipment it needs to meet demand for its proprietary energy product.
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Closing this transaction required Utica Leaseco to cross many due diligence hurdles, including working with legal counsel in three countries, dealing with the valuation of a large quantity of equipment from many suppliers, securing liens on many U.S. patents and working closely with our syndication partners.
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“We are also looking forward to a long and mutually beneficial relationship with this customer,” said David Levy, president of Utica Leaseco, “and are excited to see what the future holds for this particular company.”
