Specialty finance company Veritas Financial Partners closed a $9 million credit facility for Integrated Equipment, a global designer, manufacturer and distributor of equipment for oilfield services clients.
Based in Houston, TX, Integrated is one of only four global vertically-integrated pressure control oilfield equipment manufacturers that offers both industry-required capital equipment and elastomeric products. Clients include well servicing contractors, rental tool companies, land and jackup drilling contractors, as well as major and independent oil companies.
Between 2015 and 2016, the oil and gas industry experienced the worst downturn in 75 years as a result of oversupply, causing slumping oil prices. Market participants faced lower margins, decreased profitability, and impaired cash flow, forcing a large number of oilfield services companies into bankruptcy and destabilizing major players. Capital providers jettisoned the space, and many companies were left without working capital.
As a result of that downturn, Integrated formulated a repositioning plan including lean inventory management, a global footprint and a new focus on maintenance and replacement products, but needed working capital.
“Veritas created an innovative financing package within a tight time frame,” said Ash Sharma, president and CEO of Integrated Equipment. “With their help, we are now well-positioned for success, and we are excited about our future. We started planning this runway for growth in November and believe it will help us drive our revenue to start growing profitably again very soon.”
Veritas began working with Integrated during 2018 and was able to provide maximum proceeds by capitalizing on a wide range of the company’s assets, including domestic and foreign accounts receivable, inventory, machinery and equipment and owner-occupied real estate. The financing will be used to pay existing indebtedness, provide working capital for future growth and enable Integrated to continue implementing their repositioning plan.
“Integrated’s management had already proven themselves to be resilient operators, repositioning the company while juggling liquidity constraints,” said Evan Nadler, Veritas senior vice president. “Ash and his management team successfully navigated the most recent market downturn and are now positioned to capitalize on the compelling opportunities in front of them.”
