Commercial equipment and aviation finance provider First National Capital provided a $35 million debt refinance facility to an upstream oil and gas, machining and forging company.
The company had been recovering from the impact of the COVID-19 pandemic, below average EBITDA and compressed EBIT with high concentrations in the oil and gas drilling sector. With an approaching debt maturity and complex ownership/tax implications, First National Capital, working alongside its senior lender and investment banker, secured a refinance facility secured by aged drilling rigs on short-term contracts.
“This facility offers a great example of how our team can mobilize, dig deeper and bring flexible capital solutions to industries less favored by traditional lending,” Ben Frank, chief revenue officer of First National Capital, said. “It also demonstrates how this solution can complement existing senior lending relationships and maximize access to capital for the road ahead.”