When a Gulf Coast-based, private equity-owned oil field services company chose to refinance its bank line of credit, its leaders tapped the oil field expertise of Republic Business Credit.
The oil field company nearly sought Chapter 11 bankruptcy protection during the recent energy downturn; its private equity partner committed to the company’s future by providing a substantial equity and subordinated debt contribution as a bridge. But they still needed a senior partner who could be flexible.
The company and sponsor sought a growth orientated ABL facility that would support future growth plans. Republic understood the company’s business and provided industry expertise.
An oil field service and products manufacturer that supplies large energy production and refinement companies throughout the Permian and Eagle Ford basins, the company needed to refinance its existing bank line of credit to access its full availability while providing sufficient liquidity to scale the business back up during the energy recovery. The company specializes in equipment rental, completion services, pressure and manufactured wellhead products.
Republic Business Credit provided a $3.5 million asset-based loan facility secured by accounts receivables, inventory and equipment that refinanced the company’s incumbent bank lender while providing significantly more borrowing base liquidity at closing. The company closed the senior debt facility with Republic during the third quarter of 2021 and has outperformed its budget every month since closing.
Republic was introduced to the opportunity directly from the private equity fund as a result of Republic’s reputation within the private equity community for lower and middle market, sponsor-owned ABL facilities.
“We continue our focus on providing ABL, direct to consumer loans and factoring to private equity portfolio companies across the country,” Robert Meyers, president of Republic, said. “Our team worked with the company to structure a growth-oriented facility that provided significantly more liquidity to enable the management team to focus on growth.”
“Since our founding, we have always been committed to providing broad and inclusive access to working capital for lower and middle market companies that seek a better partnership than a traditional bank loan structure will provide,” Stewart Chesters, CEO of Republic, said.
