When a portfolio company of a Midwest based private equity group began underperforming, they chose a partner that combined both the industry expertise and wherewithal to provide a complex working capital solution by connecting with Republic Business Credit. Republic always puts its people and relationships at the core of its mission, and those bonds forged the path forward to understanding the story and structuring a facility towards the future.
Republic was chosen by the sponsor and consultant due to its flexibility, creativity, experience and its reputation for approving its original term sheets. The private equity firm acquired the company several years before, but brought in the turnaround consulting firm once it realized the management team needed immediate support and long-term improvement.
The turnaround consultant knew of Republic’s commitment to the corporate renewal of companies with its President, Robert Meyers, recently completing his year as President of the Midwest Chapter of the Turnaround Management Association.
The company provides several services to wireless carriers throughout the US as the demand for 5G radiates throughout the technology world. The company provides the contracting, electrical and tower upgrading expertise that is essential for the US to keep up with the rest of the world in the application of 5G. According to several sources, the Global 5G infrastructure market has grown from merely a $0.5 billion in 2016, to be on pace to exceed $23 billion by 2025 with some reports double or triple that number. Republic is proud to support companies that are experience recoverable distress and need the right partner to support their future growth plans.
Republic provided a $3,650,000 ledgered line of credit with extended customer eligibility up to 120 days, a $750k Unbilled Receivables facility, along with a $350,000 equipment term loan secured by their equipment and real estate. Republic relied on the sponsors commitment, the consultants 13-week cashflow and its knowledge of the industry to structure the right facility for the communications provider.
Robert Meyers, President of Republic, said, “It was a great to see our leadership team dive head first with the sponsor and consultant to underwrite a creative solution.”