Republic Business Credit Provides $16 Million Line of Credit to Oilfield Services Firm

Republic Business Credit Boosts Oilfield Service Company with $16 Million Fund

In a strategic move to bolster the growth of the oilfield services sector, Republic Business Credit, a prominent national commercial finance entity, has approved a substantial $16 million asset-based line of credit for a Gulf Coast oilfield services company. This financing not only facilitates enhanced availability of funds but also underpins the company’s ongoing expansion and operational efficiency initiatives.

The structured financial agreement aims to optimize working capital and provides the firm with the financial flexibility necessary for its future endeavors. Key features of the credit facility include a significant advance rate of up to 90% against billed accounts receivable and provisions for capital expenditures such as equipment purchases. Notably, the agreement also incorporates a $20 million accordion feature designed to further amplify the company’s borrowing capacity as it continues to scale operations.

Eric Dorner, Senior Vice President at Republic Business Credit, emphasized the value of this financial support: "This is an opportunity to support a dynamic company with increased liquidity and access to supplemental capital. Our expertise in the industry combined with scalable financing options allows us to partner effectively in their growth trajectory."

The serviced company has an impressive reputation, offering an array of onshore and offshore services that encompass fabrication, construction, maintenance, and safety operations. Its solid financial standing and proven operational discipline make it a strong candidate for this type of financial backing. Given the competitive nature of the oilfield services market, having a lender with a deep-rooted understanding of the sector was paramount for the company.

"Over fifteen years ago, we founded Republic with the aim of partnering with growing businesses in the Gulf Region, and we are proud to continue to forge strong relationships from our New Orleans headquarters," remarked Stewart Chesters, CEO of Republic Business Credit. "Our national expansion has been a response to the growing needs of middle-market endeavors, and we take pride in playing a pivotal role in our partners’ successes."

The collaboration to establish and deliver a tailored financing solution is not only a testament to Republic's commitment as a financial partner but also highlights the cooperative spirit among teams that worked to fulfill this client's requirements. Leigh Guglielmo, Senior Vice President of Business Development for Republic Business Credit, noted, "This was a true team effort, both internally and with our external partners. We successfully delivered a solution that met the client’s growth needs seamlessly."

As a nationally recognized commercial finance company, Republic Business Credit specializes in meeting the working capital needs of businesses across the nation, including those within private equity and entrepreneurial sectors. Their offerings encompass asset-based lending, ledgered lines of credit, and Fast AR Funding—providing up to $20 million in senior credit lines tailored specifically for rapidly growing businesses and those experiencing recoverable distress.

With an established footprint in New Orleans, and additional offices in major cities like Chicago, Los Angeles, Houston, and Atlanta, Republic is proud to be one of the leading finance companies in the United States, as acknowledged by the Secured Finance Network. The strategic financing provided to the oilfield services company is a sound representation of Republic's continued commitment to fostering growth and stability among businesses in essential sectors like energy and services.

The ongoing partnership between Republic Business Credit and the oilfield services sector is expected to drive not only operational growth but also contribute significantly to the economic landscape of the Gulf Region, reinforcing the importance of collaborative financial solutions in thriving industries.