TSL Express Daily News

Client: 
Intelligent Transportation Services Company
 
Financing Arranged:
$20MM Senior Secured Revolving Line of Credit

Purpose:
To Refinance Existing Debt and Support Working Capital 

Concord's Client:

The Company is a leading innovator and provider of services and solutions for intelligent transportation systems in North America, and is one of the top four companies in their space in the U.S. Its parent company, a €575m public company headquartered in Europe, is one of the top three players in Europe, offering a comprehensive suite of technology solutions. The Company is a market leader in North America due to its cutting-edge stereoscopic capability and has a strong pipeline of new customers and projects. The Company is well positioned for growth in FY24 and beyond with a strong customer base and substantial pipeline. 

The Engagement:

The Company's North American team sought a lender to capitalize the Company with debt for tax and non-tax reasons. As a project-based company, it required a sufficient line of credit to fund operating needs and large multi-year projects, bridging the gap between upfront investments and project milestone payments. 

The Concord Close:

Concord was able to help the team work through its options and find a seasoned lending partner. Concord drew on its experience to quickly identify the most appropriate lenders, and promptly sourced attractive proposals on behalf of the Company. Despite the Company's under performance to budget the last three years, Concord was able to use its 100+ years of corporate finance experience, 95% success rate closing deals, and deep relationships with a wide spectrum of nationwide corporate financiers to arrange a creative and structurally favorable senior credit facility for the Company. 
 
Concord introduced the Company to a leading ABL progress billings lender because of its understanding of the complexities of structuring and documenting the loan and advances, its expertise in lending against progress billings and other asset categories in the United States and Canada, and its scalable financing.

The Results:

A $20 Million asset based facility with the flexibility to support the Company’s growth plans. This external funding allows the region to manage its own equity investments in the Company, and provides financial resources using the Company’s assets in the United States and Canada to meet its ongoing capital needs.

“When we started working with Tom Jones and the Concord Team, we hoped to leverage Concord’s broad nationwide network of financing resources to help us find the right financing partner. Our situation was somewhat unique with the nature of our receivables, but the Concord team found a nationally recognized lender that specializes in advancing against milestone invoices and some bonded receivables. Concord was able to leverage their vast knowledge of the debt markets and procure a very attractive and creative deal structure under our particular circumstances. The Concord team was extremely responsive to all of our needs and did a fantastic job leading us step-by-step through the entire debt financing process, right up until the day of closing. Our deal closed much sooner than anticipated and we are very happy with our new lender and the results.”

~ Brian Tom, CFO
~ J. B. Kendrick, President