SG Credit Partners provided a $4 million credit facility to a full-service mechanical contractor located in the Midwest.
The company provides HVAC, plumbing/piping, and other mechanical services to the commercial and industrial/manufacturing sectors.
The company recently raised capital from a private equity sponsor that has invested in several construction services businesses. The new ownership group wanted to refinance its existing credit facility, but traditional bank financing was not an option as the Company typically acts as a subcontractor on construction projects that are primarily on paid-when-paid contracts. The ownership group also wanted a financing partner that could grow with the business.
SG Credit Partners teamed up with CapitalPlus Construction Services to provide a $13 million structured factoring facility based on the company’s strong ownership group, diversified customer base, and leverage profile.