R & R Contracting

PROJECT DESCRIPTION

Finance rail construction company acquisition

BACKGROUND

R&R Contracting, Inc. needed to complete their planned acquisition of Oberkramer Contracting (St. Louis, Missouri). After many months of rigorous due diligence, the local bank lender had not approved funding. R&R had excellent credit and a record of successful acquisitions but reached the lending capacity of its local banks. Meanwhile the deadline for completing the purchase was looming.

SRF APPROACH

Companies outgrow their banks and then find themselves with the challenge of identifying the right bank to address immediate and future needs in time-sensitive situations. SRF has the expertise to focus on your opportunity, conserve costs, and close deals on time with the right financing.

Strategic Rail Finance quickly established the trust and communication necessary with R&R to collaborate successfully through a time-constrained and critical opportunity in the company’s growth. Strategic Rail Finance rapidly assessed R&R’s strengths and opportunities to set the best strategy and direction. SRF’s credibility and communication gave comfort to the sellers to extend the closing timeline. Financing was structured on time and without the restrictive covenants that could have been imposed in the urgency to fund the transaction.

RESULTS

• Closed $14.2 million low-interest financing
• Refinanced recent million-plus equipment acquisition
• Reduced closing fees by fifty-percent
• Established new bank relationship oriented for growth
• Completed transaction by year-end to meet tax and operational goals
• Oversaw entire process to allow client to focus on merging operations pre-close