$1.75 Million Senior Secured Credit Facility
The company is a petroleum products and equipment supplier engaged in the distribution and delivery of bulk diesel, Bio-diesel, race fuel, Jet-A, gasoline, oil, lubricants, kerosene and antifreeze to its long term regional customers and also serves as the exclusive distributor of lubricants and oil products to several large scale corporations. The company also provides services including mobile on-site and fleet fueling, oil tank monitoring and freight carrier services.
The Company does a high volume of business with very thin margins and was experiencing losses, which tripped debt covenants with its current bank. Due to the large amount of debt and history of losses, the company was unable to find an alternative funding source, despite projections to become profitable within 18 months.
Business Capital successfully exited the company from the Special Assets Division of a local regional bank and refinanced an accounts receivable based revolving line of credit and term loans. Business Capital also negotiated away all covenant deficiencies and penalties with the company’s previous bank. Working with its lending partners, Business Capital successfully structured an optimal financing solution that will enable it to achieve its future growth plans.