CASE STUDY: Offshore Marine

Written By Grant Daunheimer

THE DEAL

SIZE: $20 Million
LOCATION: Newfoundland
SECTOR: Marine Offshore
LOAN TYPE: Term Loan

THE REAL WIN FOR DWA.

Reduced borrowing costs by over 70% allowing the company to generate material free cash flow and grow.

THE CHALLENGES.

  • Recently recovered from Covid which had a major negative impact on the business creating issues and defaults with the then current lending partners

  • Specialized and globally mobile security

  • Volatile energy industry exposure

  • Outstanding lawsuit

RISK MITIGANTS.

  • Highly experienced management team that weathered Covid and lender issues

  • Strong energy industry fundamentals

  • EBITDA had recovered post Covid on a contractual basis

  • Low requested LTV on a marine asset

OUTCOME.

  • Exceptional term sheets lowered borrowing costs by over 70%

  • Secured by valuable marine asset

  • Forced existing bridge lender to revise terms in order to stay involved

 
Grant Daunheimer
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