Republic Business Credit Provides $5.5MM LOC to Oil Field Service Company
Republic Business Credit provided a $5.5 million ledgered line of credit facility to a Texas-based oil field service and manufacturing company to provide funding for payroll, material costs, equipment repair and the acquisition of new assets to match the company’s increased demand forecast in 2022.
When the oil field service and manufacturing company needed a working capital facility to meet increased demand in the energy sector, it sought a partner to fuel its growth plans. Republic Business Credit collaborated with private equity sponsors to structure a factoring facility that doubled the company’s availability while maintaining the treasury management services from its incumbent bank. Republic was referred into the credit facility by several partners across the private equity, independent sponsor and asset-based lending community. Additionally, Republic worked with the company and private sponsor over several years to time up the refinance to take advantage of market conditions and opportunities.
The manufacturer was formed through an initial acquisition and a series of smaller add-on acquisitions in the oil field service industry, with the aims of vertically integrating both the product and service suite of solutions to energy companies located throughout Texas and Louisiana. The company provides manufacturing, installation, welding, fabrication and repair services across its client base.
“Companies working in the Permian and Eagle Ford shale basins are challenged by unprecedented supply and demand issues,” Robert Meyers, president of Republic Business Credit, said. “We have always been supportive of customers in the oil field industry, so we are able to understand the rapid growth demands combined with the uncertainty and unpredictability of present market conditions.”
“We partner with many of the downstream and midstream service firms to support the largest employer of our communities across the Gulf Region and it was great to partner with another well-run company,” Leigh Guglielmo, senior vice president of business development at Republic Business Credit, said.