Progressive Rail, Inc.
Finance $3.5MM rail transload, warehouse, and rail yard
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.
Strategic Rail Finance formulated a multi-part strategy which combined new financing with a reengineering of existing debt, credit lines, and collateral assignments.
- 130% financing
- Coordinated $2.5 million 20-year financing at prime+75 bps
- Arranged $500,000, 1.77%, 10-year state government loan
- Secured $685,000 additional credit facility on existing assets
- Established $750,000 equipment purchase line of credit
- Negotiated $200,000 cash contribution from connecting Class I carrier
- Facilitated release of cash, inventory, and receivables from all collateral assignments
- Brought $4.6 million to two-mile industrial park switching railroad