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Republic Business Credit Provides $6MM Facility to West Coast Government Contractor

February 28, 2019, 09:00 AM
Filed Under: Industry News

Republic Business Credit Provided a $6 million facility to West Coast private equity owned government contractor.

When a sponsor-owned government contractor needed additional liquidity during the longest government shutdown in United States history, they set sail to partner with Republic Business Credit. When their traditional bank facility would not support their growth, one of their peer companies in the same sector, one of Republic’s current clients, recommended Republic as a solution.

Due to the cyclical and large project nature of the shipyard repair business, the company needed a flexible and covenant free solution that leveraged their government and commercial receivables.  Additionally, the company sought a financing partner that understood the complexity of being a sponsor-owned company as well as the procedures associated with government assignment of claims process.

Republic provided a $6.0m ledgered line of credit combined with a $500,000 supplemental mobilization call facility that smoothed out any working capital gaps due to the processing of government paperwork or payments. Additionally, Republic provided a covenant free solution to help assist with any seasonal cashflow strains.

“Government shipyard contractors provide marine and defense skilled employment opportunities and build strong communities where they operate,” said Stewart Chesters, Chief Executive Officer of Republic. “As a commercial finance company that specializes in government contractors, we are excited to partner with business that support our national defense efforts.”

Republic Business Credit supports private equity sponsors and other capital partners across the United States to create value, implement turnaround plans and grow successful businesses. 

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