Coral Capital Solutions provided a $6 million accounts receivable factoring facility to Cimarron Underground, a Kansas-based energy services contractor.
A private equity group specializing in construction for energy-related businesses acquired the company. Coral Capital’s factoring facility provided working capital as part of the acquisition, supporting Cimarron’s planned expansion. The buyer used the initial funding to buy out the founder and a venture capital group that invested in the company several years ago.
Coral Capital underwrote the company for the required acquisition funding and closed the transaction in a matter of weeks. The facility also allowed Cimarron to maintain its existing credit facility, while allowing the company access to new account receivables funding.
“Our proven industry expertise in providing acquisition financing with speed and flexibility, provided the buyer with the assurance it needed to pursue the purchase of the company,” said Jim Bertie, chief operating officer of Coral Capital.
