Business Capital structured and secured $10 million of mezzanine financing for the largest independent fabricator and installer of steel bar (rebar) products and post-tension cables in California and Nevada.
The company’s product is used to reinforce concrete in both public and private sector projects, including low to high rise buildings, roads, bridges mass transit, hotels, stadiums, schools as as refinery and water treatment plants.
Increased infrastructure and construction spending in California created a need for additional liquidity to support operations and cash flow increases in a business with long invoice/payment cycles. Additionally, management saw a strategic opportunity to increase profitability and competitive positioning by taking advantage of fluctuations in steel pricing.
“Since the Great Recession, we have seen a boom in the construction industry, particularly in San Francisco and the greater Bay Area,” said Chuck Doyle, managing director of Business Capital. “It was fascinating to work with a client that is directly contributing to this growth.”
The debt facility will be used to generate future revenue and cash flow growth and allow the company to benefit from market opportunities and favorable supplier pricing.