eCapital, an AI-powered fintech company building the next generation of specialty finance, provided an $18 million asset-based lending facility to a southern U.S.-based manufacturer of forged steel components serving the oil and gas, power generation and industrial markets. The financing strengthens liquidity to support the company’s ongoing turnaround and future growth objectives.
Operating in a capital-intensive industry, the manufacturer required a financing partner capable of providing increased borrowing availability within an expedited closing timeline. The transaction also presented specific structural considerations, including a partial repatriation of sponsor equity and the use of an existing equipment appraisal. Addressing these requirements called for a lender with the experience to evaluate the company’s assets within the context of its turnaround strategy.
Referred by a longstanding debt advisor relationship, the company selected eCapital through a competitive process for its understanding of the business and ability to deliver a flexible financing solution. After meeting with management and touring the facility, eCapital tailored the $18 million facility to the company’s specific needs, providing enhanced advance rates on accounts receivable and additional borrowing capacity against inventory, while accommodating a partial sponsor equity repatriation and leveraging an existing equipment appraisal to support a timely closing.
“Turnaround situations require a financing partner who understands the business and can respond to its evolving requirements,” Michael Conrad, senior vice president, business development officer at eCapital, said. “Our ability to align the financing with management’s objectives was critical to delivering the liquidity needed to move the business forward.”
Steve Silver, head of sales, ABL at eCapital, added, “Transactions of this nature require a disciplined approach to collateral evaluation and the agility to structure around complex financing requirements. By recognizing the value of the company’s receivables and inventory, we were able to maximize borrowing availability while accommodating the nuances of the transaction.”
