CG Commercial Finance has completed an operating lease of just over $10.2 million for yellow iron, Manitowoc cranes, fleet trucks, Skytrak forklifts, wheel loaders and backhoes.

The lessee was not disclosed, but CG says it is a general engineering contractor focused on heavy civil construction. According to CG, the types of projects the borrower is involved with include construction of bridges, rail transportation, water resource, and earthquake reconstruction projects throughout the United States.

The transaction was structured as a 60-month, sale-leaseback operating lease to monetize existing equipment assets resulting in improved financial ratios and increased liquidity.

Although the lessee exhibited high cash flow, there existed some credit challenges due to historical net profitability. CGCF’s underwriting team performed an in-depth analysis of the historical financial statements and projections based on the business backlog to understand the longer term positive credit outlook for the company. Additionally, CGCF’s structuring and asset management teams structured the operating lease around the various issues associated with the client’s subsidiary joint venture interests. CGCF also managed multiple appraisals, lien releases and subordinations with various banks, and inspection sampling required for a successful funding.

CG Commercial Finance is a global specialty finance company whose primary expertise includes financing for capital equipment, and structured project and debt financing for mid-sized and large companies.