Service Type: Financing
Client: Summit Energy Solutions
Client Description: A commercial fuel and cardlock operator providing fleet fueling options for business and government accounts, fueling equipment and propane distribution through proprietary, regional and national fleet fueling card networks.
- The Company’s planned and organic growth required additional cash beyond its initial plan. With a short operating history, the Company would require entrepreneurial capital not served by institutional lenders.
- Upon analyzing the Company’s business model, customer base, financial statements, and working capital needs, Corner Capital and the Company determined that the Company’s volume growth was also creating cash challenges through growing accounts receivables.
- Corner Capital structured a revolving facility allowing the Company to strategically borrow against certain receivables without the cumbersome and expensive requirements typically associated with working capital facilities.
- Corner Capital successfully marketed the Company’s financing opportunity and leveraged its relationships to place Summit with a flexible lender.
- The refinancing terms accommodated the Company’s intermittent cash needs at an attractive price, and were acceptable to its senior lender resulting in a successfully negotiated subordination agreement.