Orion Group, a specialty construction company, entered into a $13 million sale-leaseback of certain concrete segment equipment with Gordon Brothers. At the same time, Orion closed a three-year, $103 million senior secured asset-based credit facility with White Oak ABL and White Oak Commercial Finance.
The credit facility replaced Orion’s $42.5 million revolver with Regions Bank and other lenders. The facility includes a $65 million asset-based revolving credit facility and a $38 million fixed asset term loan. The revolver will initially bear interest at a rate of the 30-day SOFR plus 5.5% and the term loan will bear interest at a rate of the 30-day SOFR plus 8%, subject to a SOFR floor of 4%.
At closing, Orion made an initial revolver draw of $9.5 million. The company will primarily use borrowings from the facility to refinance existing debt as well as for other general corporate and working capital purposes. The sale-leaseback includes equipment on lease schedules of 24 months and 36 months.
“This new credit facility and $13 million sale-leaseback provide increased financial flexibility and additional capital to take advantage of our growth opportunities. We are now well positioned to execute our strategic plan and deliver improved financial results to our stakeholders,” Travis Boone, president and CEO of Orion, said. “White Oak has been a collaborative partner and we appreciate their support and strong vote of confidence.”
“We are very impressed with Orion’s new management and their strategy to unlock the embedded value of the company,” Tom Otte, head of White Oak ABL, said. “Orion’s recent major wins like the Pearl Harbor project for the Navy strengthened our conviction that White Oak is the right financing partner to help Orion fulfill its growth potential.”
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