TCC Financial Closes $30.8MM Senior Secured Term Loan Facility For California Equipment Company

TCC Financial (TCC), the U.S. lending division of Travelers Capital, a Canadian-based asset-based lender, announced the closing of a $30.8 million senior secured term loan facility to support the growth and development needs of a leading heavy equipment rental business headquartered in California. Structured as a non-fully amortization 24-month bridge loan, the facility was tailored to assist the firm re-stabilize in a post-COVID environment, improve free cash flow retention and inject working capital to help with the company’s growth objective. To ensure business operations and existing vendor relationships were not interrupted, TCC took an asset-specific underwriting approach and carved out specific classes and units of personal property, concurrently entering into inter-creditor agreements for a seamless closing amongst the existing creditors.

“By consolidating the various incumbent debt facilities, we were able to structure a solution that provided material working capital at inception and a reduced annual debt service burden,” Warren Miller, vice president of TCC, said.

To facilitate within the required closing timeline, TCC engaged the services of Rouse Appraisal, a Ritchie Bros. Auctioneers company, to assist with the prompt and comprehensive appraisal of nearly one-thousand assets.

By providing TCC with thorough and reliable values in a shorter-than-usual turn-around time, Rouse’s assistance proved vital in making this deal come together,” Miller said. “The partnership with Rouse provided us with the comfort needed to take a more aggressive position on the collateral than we would have typically in this economic climate, which ultimately allowed us to meet the client’s working capital goals.”

TCC notes that the agreed-upon financing does not include any equity or equity-linked component and is entirely non-dilutive for shareholders.

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