Progressive Rail, Inc.

Project Description

Finance $3.5MM rail transload, warehouse, and rail yard

Details

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PROJECT DESCRIPTION

Finance $3.5MM rail transload, warehouse, and rail yard

BACKGROUND

Progressive Rail sought financing for a 50,000 sq. ft, 21-acre warehouse and transload operation.

Owner Dave Fellon was hemmed in by the peculiar challenges of railroad financing. After nine months of presenting his operation to every conceivable lender, neither his own bank, nor any other lender would finance this $3.5 million growth project. Fellon’s current bank held title to all corporate assets and was unwilling to lend more despite the expansion of the asset base since the previous financing.

SRF APPROACH

Strategic Rail Finance formulated a multi-part strategy which combined new financing with a reengineering of existing debt, credit lines, and collateral assignments.

RESULTS