Service Type: Refinancing
Client: Duran Oil Company
Client Description: An independently owned and operated regional oil company providing fuels and lubricants through its Shell wholesale marketing agreements and retail operations.
- Due to the sale of its lender’s loans to a new entity, the new lender desired to exit the entire energy industry and would not amend/extend the loans past an upcoming maturity date.
- The Company engaged Corner Capital to assist in its efforts to refinance all of its existing long term debt, requesting a small portion of excess proceeds be set aside to finance the remodeling and re-imaging of several retail sites.
- The Company’s existing lender largely terminated any new loan originations, and ceased to be a reliable source of future growth potential.
- The combination of a stagnant lending partner and viable opportunities to improve store-level performance led the Company to pursue a refinancing effort, providing the necessary funds for remodeling and re-imaging, while developing a reliable banking relationship with a new lender better suited to the Company’s future growth objectives.
- Corner Capital structured a financing comprised of: utilizing SBA loans to the maximum limit for a 25 year amortization, and sourcing the remaining loan balance to a regional lender interested in certain store collateral.
- The collateral was split between the two lenders, with additional stores remaining debt-free for future financing at the Company’s discretion.
- Corner Capital Advisors brought the proposed refinancing package to market and executed the transaction with two lending groups simultaneously.
- The refinancing terms accommodated the Company’s remodeling, re-imaging, and upgrading needs while maintaining a long-term focus for potential growth, and releasing certain stores from any encumbrances.