nFusion Capital Funds $25M ABL Deal Provides Framework for the Future

Client:

Headquartered in the Midwestern United States, this construction management company provides engineering and construction services to numerous Fortune 100 clients in the steel, refining, power generation, natural gas, chemical, automotive, food processing, and pharmaceutical industries. The Company has steadily grown since its founding over 30 years ago.

Situation:

This family-owned business was in the midst of a transfer of control to new leadership and was bumping up against the cap of its existing line of credit with a local credit union. The lender was unwilling to increase the facility size or provide access to additional working capital. Additionally, the Company had experienced past financial issues that kept it from being bankable by a larger financial institution with more stringent credit criteria. Understanding the multi-faceted challenges involved, the Company’s financial advisor referred them to nFusion Capital’s Jesse Baer. Jesse led a series of negotiations with the credit union to bifurcate the collateral and develop an intercreditor agreement which satisfied the lender and the Company’s need for an additional cash infusion.

Solution:
$25 million ABL facility

nFusion came on board at a time when we needed a little bit more aggressive facility. They were able to provide the terms we needed, and the team is extremely responsive and helpful. The relationship is still very new but overall it has been a good experience.

Company CEO

Result: 

nFusion’s flexible ABL line of credit enabled the Company to improve cash flow and working capital by lending against the newly unencumbered assets. The Company’s new leaders also felt confident taking on larger projects to continue their growth trajectory.

We are pleased to help this long-established company turn the corner to next-generation ownership with a deal that could only be fashioned by Fusion. The projects they take on are large, very capital and labor intensive, and this facility freed up the liquidity they needed to bring the company into the future. Their future is looking brighter and brighter every day.

Jesse Baer, Fusion Capital Senior Vice President