Republic Business Credit completed a $5 million facility – with an accordion of up to $7.5 million – for a Louisiana-based energy workforce services provider. The funding will be used to provide recovery capital and additional liquidity alongside a Gulf Coast regional bank.
The client provides highly skilled temporary labor services into the oil and energy sector, including light industrial manufacturing, welding and heavy equipment specialists. It needed to fill new customer orders as the Gulf Coast region works through a shortage of skilled employees in certain areas of the energy sector. This led to a need for more leverage on its receivables than the bank was willing to provide in order to meet its working capital needs for weekly payroll and mobilization requirements for jobs.
The bank referred the client to Republic due to an underperforming line of credit. Republic subsequently replaced the facility while partnering with the bank to offer a new term loan secured by equipment and real estate. The business can now move forward with its longer term business growth needs without requiring a new lender in the next 36 months.
“Staffing and workforce service businesses provide essential skilled workers to those that do not have access or the time to recruit full-time employees,” said Robert Meyers, president of Republic. “As a commercial finance company, we are excited to assist companies that support the expanding Gulf Coast business community. We have strong relationships with local bankers and other centers of influence, and they trust us to provide flexible working capital facilities.”
