Garrington Capital, a senior secured, asset-based lender to the middle market, provided a $2 million equipment financing facility to an oil and gas service entity operating in Nevada.
The facility, sized at 80% of the appraised value of the company’s equipment, will fund the purchase of additional equipment, increasing capacity to serve customer demand. The financing follows the company’s recent Reverse Vesting Order (RVO) restructuring, which transferred all assets free and clear and gave it a clean balance sheet.
The facility allows the company to draw in $500,000 increments as equipment needs arise, with repayment tied into the company’s existing factoring facility with Garrington.
“We already knew this group through our factoring relationship, so we understood the business and could move quickly. Structuring the term loan to draw in increments and tie into their existing facility let us match the financing to how the business actually operates,” Erica Axani, executive vice president and chief risk officer at Garrington Capital, said.
With the new facility in place, the company is positioned to scale operations through its seasonally strong months.
