Republic Business Credit provided an $8.5 million asset-based loan (ABL) facility to a Midwest-based sponsor-backed transportation company. The facility will refinance the company’s existing line of credit while providing additional working capital, enabling it to grow despite industry headwinds.
Post-pandemic, the company faced multiple obstacles, including a downturn in the transportation industry, automotive tariffs and strategic changes by large automotive companies. The sponsor sought additional availability and increased covenant flexibility on the company’s existing revolving line of credit, including the addition of a $1.25 million equipment term loan. The equity sponsor reached out to Republic, which structured a covenant package aligned with the company’s projections and the capital commitments of its sponsor. The result was a credit facility that supports the company through the market fluctuations and economic cycles of both the transportation and automotive industries.
“Our client took a challenging time and turned it into an opportunity for growth,” Leigh Guglielmo, senior vice president of Republic Business Credit, said. “I’m excited we could create a lending solution that allows them the ability to move forward with trust and confidence in their lending partner.”
Favorable market conditions are anticipated for 2026, and the company has already seen a return to monthly profitability with new routes and increased volume in current routes.
“It is crucial that we support the success of transportation companies, one of the fundamental cornerstones of our economy,” Robert Meyers, president of Republic Business Credit, said. “Nearly everything we use or consume has to be moved by rail, ship and truck, an often-interconnected supply chain that fuels our broad GDP growth as a country.”
