Siena Lending Group, an asset-based lender, closed a $70 million credit facility with Navajo Transitional Energy Company (NTEC). The financing solution includes a $50 million asset-based revolving credit facility and a $20 million second lien term loan arranged by Siena.
The three-year credit facility was used to complete a strategic acquisition, refinance existing debt and provide additional capital to support NTEC’s strong ongoing growth. The acquisition advances NTEC’s efforts to continue diversifying beyond its core coal mining business, which supports electricity production for vital energy needs throughout The United States and in global power markets.
Michael Gisin, CFO at NTEC, commended the Siena team’s creativity in structuring the new and expanded debt facility.
“Siena was able to structure a facility that met our needs while successfully navigating the complexities of lending to a company owned by the Navajo Nation. We are impressed by Siena’s flexibility and practical nature,” Gisin said.
“Our team appreciated the opportunity to develop a financing solution for a market leader in the energy industry,” Stephen Fuscaldo, director of new business originations at Siena. “NTEC is extremely well-run, and we worked hard to understand its intrinsic value and its customers’ strong reliance on the company.”
“Siena is pleased to provide financing solutions for clients spanning the energy industry, from diversified companies like NTEC to renewable energy leaders,” David Grende, president and CEO of Siena, said. “We are also proud to play a role in helping NTEC accomplish its mission of supporting the Navajo Community.”