BizCap structured and secured $10 million in mezzanine financing for the largest independent fabricator and installer of steel bar (rebar) products and post-tension cables in California and Nevada.

Their product is used to reinforce concrete in both public and private sector projects, including: low to high rise buildings, roads, bridges mass transit, hotels, stadiums, schools, refinery and water treatment plants.

The fast pace of expansion due to increased infrastructure and construction spending in California, created a need for additional liquidity to support operations and cash flow increases in a business with long invoice/payment cycles. Additionally, management saw a strategic opportunity to increase profitability and competitive positioning by taking immediate advantage of fluctuations in steel pricing.

Having worked with many clients in the construction industry, Business Capital was able to understand and underwrite this Company's challenges based on the profitability of their existing pipeline, as well as future revenue and cash flow growth to be generated from this subordinated debt facility allowing them to benefit from market opportunities and favorable supplier pricing.