Business Capital (BizCap) structured and delivered a $12 million asset-based line of credit for a producer of asphalt sold primarily to highway construction companies in California. The company also produces distillate and naphtha, which is sold to local refineries for the production of gasoline. Crude oil is processed into these finished products at the company’s own plant, which has been in operation for more than 88 years. The new credit facility will allow the California asphalt plant to ramp up production to meet growing local demand as the state’s infrastructure undergoes major repair and maintenance.
“With a recently passed California bill of over $5 billion annually designated towards road repair and a $2 trillion national bill on the table for infrastructure, our state and country will see a significant influx of new revenue to invest in streets and highways,” Chuck Doyle, president and CEO of BizCap, said. “Our client’s products and services will be in high demand, so we are pleased to be able to assist them in meeting the challenge of rapid expansion.”