Service Type: Refinancing
Client: Wenatchee Petroleum Company and its affiliates
Client Description: The Company has grown and expanded through three generations with four business channels consisting of: Motor Fuels, Lubricants, Propane and Transportation.
- The Company was outside of compliance metrics with its primary lenders due to material margin impact in its markets. Additionally, the partners of the Company disagreed over operating and financing metrics.
- The Company engaged Corner Capital solve the issues with its primary lenders through either renegotiation or refinancing.
- The Company was uncertain as to its core competencies and where to focus its efforts during the next 5 years.
- Corner Capital was asked to assist the Company gain market stability and improve its balance sheet for attractive financing.
- The Company also had the opportunity to reduce its fuel supply costs through the building of a rail terminal/siding for bulk product purchases.
- Financial projections assessing pro forma effects of the Company’s business plan were incorporated to a comprehensive financial model.
- Corner Capital suggested the divestiture of certain non-strategic assets – both retail and bulk plants – as well as to exit certain unprofitable geographies.
- Corner Capital entered into negotiations with the Company’s lenders to secure extensions/amendments to implement the new business strategy.
- Corner Capital provided a working capital facility to assist the Company in exiting an unfriendly banking relationship.
- The Company was able to renegotiate its senior term debt on terms acceptable to the Company to implement certain asset divestitures.
- The Company “rightsized” its assets into core, profitable markets while retaining fuel supply income streams, and performed on its complete business plan
- The Company was able to pay-off its lenders without entering into any default, and the Company is prepared for future growth with a profitable asset base.