A speciality O&G service provider was increasing market share by offering short-term incentive pricing to end users but unfortunately was at the expense of certain margins with impacts to financial covenants, which ultimately led to a falling out with existing senior creditor. Travelers was able to assist by re-leveraging the existing fleet, facilitate a sizeable working capital injection, and coordinate a full term of interest-only payments to assist with the client’s turnaround initiatives. The capital solution allowed the company to continue on its short-term growth strategy while materially lowering debt service obligations, and freed them from strict financial covenants.
After a derailed expansion attempt stemming from customer delays, and Covid-19 adversely impacted the clients balance sheet and cash flow, Travelers’ structured a bridge facility that re-leveraged a number of balances sheets within the group and underwrote proforma in order to inject critical working capital that allowed the business to execute on it’s work pipeline and continue on its path to recovery
A steel fabrication outfit experienced hardships in 2020 due to delayed projects as a result of Covid-19. As the market recovered, and projects started to come back online, the company found itself to be in a liquidity crunch. Travelers’ re-leveraged the company’s unique array of manufacturing equipment so that the borrower could action on the upfront costs related to restart and execute on it’s work pipeline.