Republic Business Credit Provides $3.5MM Asset-Based Loan for Oil Field Services Company

Republic Business Credit provided $3.4 million in asset-based loans for banks to refinance its bank line of credit.

The oil field company nearly sought Chapter 11 bankruptcy protection during the recent energy downturn; its private equity partner committed to the company’s future by providing a substantial equity and subordinated debt contribution as a bridge.

“Republic was an easy decision, given the firm’s long-standing customer relationships, niche market and sophisticated management team to continue our support,” Republic’s managing director said. “While the private equity fund stepped up, the team needed a more agile debt partnership for the resurgence. 

“Republic has funded several of our portfolio companies in the past few years. With an already agreed set of documents, we confidently and easily executed the closing process,” the managing director said.   

The company and sponsor sought a growth orientated ABL facility that would support future growth plans. Republic understood their business and provided industry expertise.

An oil field service and products manufacturer that supplies large energy production and refinement companies throughout the Permian and Eagle Ford basins, the company needed to refinance its existing bank line of credit to access its full availability while providing sufficient liquidity to scale the business back up during the energy recovery. The company specializes in equipment rental, completion services, pressure and manufactured wellhead products.

“We needed a senior debt partner who could react decisively and consistently and who viewed us as a trusted partner in our growth strategy,” Robert E. Meyers II, president at Republic, said.

“Republic has demonstrated unique expertise in our industry time and time again while delivering on its promise of providing a unique facility for each of our structured credit and portfolio companies,” a founding partner of the private equity firm said.

Republic Business Credit provided a $3.5 million asset-based loan facility secured by accounts receivables, inventory and equipment that refinanced the company’s incumbent bank lender while providing significantly more borrowing base liquidity at closing. The company closed the senior debt facility with Republic during the third quarter of 2021 and has outperformed its budget every month since closing.

Republic was introduced to the opportunity directly from the private equity fund as a result of Republic’s reputation within the private equity community for lower and middle market, sponsor-owned ABL facilities. 

“We continue our focus on providing ABL, direct to consumer loans and factoring to private equity portfolio companies across the country,” Meyers, said. “Our team worked with the company to structure a growth-oriented facility that provided significantly more liquidity to enable the management team to focus on growth.”

“Since our founding,” Stewart Chesters, CEO at Republic said, “we have always been committed to providing broad and inclusive access to working capital for lower and middle market companies that seek a better partnership than a traditional bank loan structure will provide.”

Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.