Republic Business Finance provided a $5 million ledgered line of credit to a Louisiana-based midstream energy company.
The client was referred to Republic by a Gulf Coast community bank because of the company’s underperforming line of credit, Republic Business Credit replaced its facility while partnering with the bank to retain the treasury management services.
The client sought new recovery capital and a partner that knew the cyclical nature of its industry.
The client is a diversified heavy industrial contractor providing manufacturing, field services and industrial specialties to the petrochemical industry. It needed more leverage on its receivables than the bank could provide to support significant upfront mobilization costs for each new project. Republic provided a flexible, covenant-free solution to accommodate the business. The client is filling new customer orders as the Gulf Coast region works through a shortage of industrial contractors in several areas of the energy sector.
“Energy production and their derivative petrochemical products are the lifeblood of our manufacturing industry in America,” said Stewart Chesters, CEO of Republic. “As a commercial finance company, we are excited to assist companies that support the the Gulf Coast business community. We have strong relationships with local bankers and other centers of influence, and they trust us to provide the correct growth capital facility.”
