Flexibility and speed key to funding deal

Flexibility and speed key to funding deal

Client:
A leading innovator and provider of services & solutions for intelligent transportation systems in North America, this company is one of the top four companies in their space in the U.S., and its parent is one of the top three players in Europe. They offer a comprehensive suite of products and services covering the entire value chain by combining advanced sensors, surveillance systems, telecommunications technologies, and processing. Their software for the all-electronic tolling market in North America is highly sought after due to their cutting-edge stereoscopic capability.  The Company was well positioned for growth in FY 24 and beyond with a stable customer base.

Situation:
The Company’s parent company, a foreign-owned entity, sought a lender to capitalize their U.S. venture with debt for tax and non-tax reasons.  The Company required a sufficient line of credit to fund its operating needs and large multi-year projects, which required a substantial upfront investment to pay staff and purchase materials. The Company was drawn to nFusion for its understanding of the complexities of structuring and documenting the loan and advances, its willingness to lend against progress billings and other asset categories in the U.S. and Canada, and its scalable financing.

Solution:
nFusion provided a $20 Million Asset Based facility with the flexibility to support the Company’s growth plans.

“We were both very pleased with the entire nFusion Capital financing process. From working with Jesse to ensure nFusion understood or business and funding needs, to partnering with Anthony and Rachel to craft a facility that supports our current organizational challenges and growth aspirations, the nFusion team has been very transparent, collaborative, and innovative. Their team presented a realistic perspective and listened carefully to what we needed so they were able to pivot around a roadblock and quickly close our facility. Everyone demonstrated a willingness to be a strong partner, while at the same time prioritizing our ability to manage and position our business and succeed.”

-Company President and Company CFO

Result:
The external funding eliminated the need for the foreign parent company to make additional equity investments in the Company and provided availability using the Company’s assets in the United States and Canada sufficient to meet its ongoing capital needs.

“The strength of this transaction came from our full Tm working arm-in-arm from the beginning,” said nFusion’s Jesse Baer. “It was a complex deal with a lot of moving parts, but our underwriting, portfolio and executive teams worked to ensure the most competitive structure for a deal that was extremely sought after in the private lending industry.”

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