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R & R Contracting

R & R Contracting

Jan 14, 2020

R & R Contracting

PROJECT DESCRIPTION

Finance rail construction company acquisition

 

BACKGROUND

R&R Contracting, Inc. needed to complete their planned acquisition of Oberkramer Contracting (St. Louis, Missouri). After many months of rigorous due diligence, the local bank lender had not approved funding. R&R had excellent credit and a record of successful acquisitions but reached the lending capacity of its local banks. Meanwhile the deadline for completing the purchase was looming.

 

SRF APPROACH

Companies outgrow their banks and then find themselves with the challenge of identifying the right bank to address immediate and future needs in time-sensitive situations. SRF has the expertise to focus on your opportunity, conserve costs, and close deals on time with the right financing.

Strategic Rail Finance quickly established the trust and communication necessary with R&R to collaborate successfully through a time-constrained and critical opportunity in the company’s growth. Strategic Rail Finance rapidly assessed R&R’s strengths and opportunities to set the best strategy and direction. SRF’s credibility and communication gave comfort to the sellers to extend the closing timeline. Financing was structured on time and without the restrictive covenants that could have been imposed in the urgency to fund the transaction.

 

RESULTS

  • Closed $14.2 million low-interest financing
  • Refinanced recent million-plus equipment acquisition
  • Reduced closing fees by fifty-percent
  • Established new bank relationship oriented for growth
  • Completed transaction by year-end to meet tax and operational goals
  • Oversaw entire process to allow client to focus on merging operations pre-close
R & R Contracting

New Hope Capital Partners

Jan 14, 2020

New Hope Capital Partners

PROJECT DESCRIPTION

Coordinate SBA loan for export receivables

 

BACKGROUND

New Hope Capital Partners, a private equity firm in transportation and supply chain services needed a funding facility to support one of its start-up operations. While the new company was attracting significant overseas customers, the timeline for payment between sourcing in the U.S. and delivery overseas was limiting cash flow and growth. Creating finance approaches for early-stage companies is often a challenge.

 

SRF APPROACH

SRF quickly gained a thorough understanding of the unique strengths and peculiarities of the business. Armed with this grasp of the business and complete confidence in the principals’ abilities, Michael Sussman, president of SRF, worked through his Washington, DC relations at the US Department of Agriculture, Small Business Administration, and U.S. Department of Commerce to rapidly pinpoint both the ideal federally-supported program and the best participating bank for regional administration of the client relationship.

 

RESULTS

  • Arranged $2MM export receivables line of credit
  • Led client directly to the best solution with no time-consuming detours
  • Established the lender’s confidence for lowering years-in-business requirement
  • Created excellent bank relationship for meeting future capital needs
R & R Contracting

Eagle Globe Advisors

Jan 14, 2020

Eagle Global Advisors

PROJECT DESCRIPTION

Advise on high-speed passenger rail investment

 

BACKGROUND

Strategic Rail Finance was recommended by the project developers for providing due diligence support to the principal of Eagle Global Advisors, a private equity firm, who was evaluating a potential investment in this innovative high speed passenger rail and land development project.

 

SRF APPROACH

SRF determined the exact amount and focus of an appropriate due diligence evaluation to augment the client’s own capable transaction analysis. During this one-month engagement SRF assessed the project status, including the local, state, and federal landscape for support or opposition, and the likelihood of public sector funding assistance. We completed a review of the project’s investment grade ridership study incorporating input from our team of national experts in passenger rail transportation.

 

RESULTS

  • Completed a thorough analysis in a short time at minimal cost to the client
  • Applied our successful freight transportation approach to the passenger transport field
  • Client proceeded with their investment, better informed by our indepth report