Client Introduction
The Company designs and manufactures hydrovac trucks as well as provides heavy duty truck maintenance operations in central Alberta.
It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction markets. Hydrovac trucks use high pressure water and vacuum to safely penetrate and cut soil to expose critical infrastructure for repair and installation without damage.
Hydrovac excavation methods are quickly becoming a standard in the North America to safely excavate in urban areas and around critical infrastructure greatly reducing infrastructure damage and related fatalities. In China, the Company’s subsidiary is used principally to source certain parts to the Company’s North America operations.
Mission
- Optimize Tornados’ capital structures by providing a full range of bank, asset-backed and alternate lending options.
Our Contribution
- Worked directly with the client to assess and optimize the capital structure and costs of different sources of capital;
- Identified the best source of financing and provided insights into the likely structure, pricing, maturity and terms;
- Supported and delivered execution throughout the entire financing process, from preparation, financial modelling and structuring the transaction, to support negotiations with lenders and reviewing (draft) financing documentation;
- Ensured maximum competition between financiers and supported negotiations with financiers to achieve maximum flexibility in the documentation.
Result
- Successfully entered into a $3,000,000 revolving operating line of credit and a $4,875,000 term loan with The Toronto-Dominion Bank.
- A portion of the TD Facility will be used to repay the balance of a non-interest bearing vendor take-back mortgage secured against the Company’s facility located in Red Deer, Alberta and the balance of the TD Facility will be used for general working capital purposes.
- “The TD Facility greatly improves our working capital which will be required to finance an increasingly robust outlook for demand to purchase Tornado hydrovacs.” – CEO Bill Rollins.
