Republic Business Credit provided a $6 million ledgered line of credit and a $500,000 supplemental mobilization call facility to a West Coast-based, private equity-owned government contractor
The contractor needed additional liquidity as a result of the 35-day government shutdown. When its traditional bank facility would not support its growth, one of its peer companies in the same sector and one of Republic’s current clients, recommended Republic as a solution.
Due to the cyclical and large project nature of the shipyard repair business, the company needed a flexible and covenant free solution that leveraged its government and commercial receivables. Additionally, the company sought a financing partner that understood the complexity of being a sponsor-owned company as well as the procedures associated with government assignment of claims process.
Republic provided a facility that smoothed out any working capital gaps due to the processing of government paperwork or payments. Additionally, Republic provided a covenant free solution to help assist with any seasonal cashflow strains.
“Government shipyard contractors provide marine and defense skilled employment opportunities and build strong communities where they operate,” said Stewart Chesters, Republic CEO. “As a commercial finance company that specializes in government contractors, we are excited to partner with business that support our national defense efforts.”
Republic Business Credit supports private equity sponsors and other capital partners across the United States to create value, implement turnaround plans and grow successful businesses.