Republic Business Credit provided a $16 million asset-based facility to a Gulf Coast-based oilfield services company. The financing provides greater borrowing availability to support ongoing growth initiatives, including the expansion of the Company’s manufacturing capabilities, as well as refinance existing indebtedness.

The financing agreement was structured to optimize working capital with greater borrowing availability and enhanced financial flexibility to meet the Company’s future growth plans with a $20 million accordion feature, a significant increase. Republic crafted a facility with up to a 90% advance rate against billed accounts receivable, advances against unbilled invoices, and a carve-out for capital expenditures such as equipment purchases.

“This is an opportunity to support a dynamic company with increased liquidity and access to supplemental capital,” said Eric Dorner, SVP of Republic Business Credit. “The combination of our industry expertise and scalable capital will enable us to support their next chapter.” 

The Company, which provides a variety of offshore and onshore services including fabrication, construction, maintenance, and safety, has a strong history of financial performance and operational discipline, a diverse product line and significant growth potential. The Company sought a local lender with a deep understanding of the oilfield services sector. Republic Business Credit, with its extensive experience in the region, was the ideal growth partner. 

“Over fifteen years ago, we founded Republic with the goal of partnering with growing businesses in the Gulf Region, and we are proud to continue to be headquartered in New Orleans,” said Stewart Chesters, CEO of Republic Business Credit. “Since our founding, we have expanded nationwide to support middle market growth opportunities, and we are honored to play a role in our partners’ continued success.”

Leigh Guglielmo, SVP of Business Development for Republic Business Credit, added, “This was a true team effort, both internally and externally. We were able to work together to deliver a solution that perfectly met the growing client's needs.”