IRVINE, Calif.--(BUSINESS WIRE)--CG Commercial Finance has completed an operating lease in the amount of $10,206,405 for yellow iron, Manitowoc cranes, fleet trucks, Skytrak forklifts, wheel loaders and backhoes.
Our client is a leading general engineering contractor focused on heavy civil construction with a 24 year history of building public sector projects. Our client’s projects include construction of bridges, rail transportation, water resource, and earthquake reconstruction projects throughout the United States.
The transaction was structured as a 60 month, sale-leaseback operating lease to monetize existing equipment assets resulting in improved financial ratios and increased liquidity.
Although the company exhibited high cash flow, there existed some credit challenges due to historical net profitability. CGCF’s underwriting team performed an in-depth analysis of the historical financial statements and projections based on the business backlog to understand the longer term positive credit outlook for the company. Additionally, CGCF’s structuring and asset management teams successfully structured the operating lease around the various issues associated with the client’s subsidiary joint venture interests. CGCF also managed multiple appraisals, lien releases and subordinations with various banks, and inspection sampling required for a successful funding.
About CG Commercial Finance
CG Commercial Finance is a global specialty finance company whose primary expertise includes financing for capital equipment, and structured project and debt financing for mid-sized and large companies. CGCF employs an advisory approach and discovery process to first understand its client's unique situation and then to apply its extensive knowledge of business operations, GAAP, IFRS, Tax, and Managerial Accounting to structure and deliver the best fit solution for its clients.