Aventura, FL – Trade Finance Solutions Inc., a leading provider of global trade financing solutions, announced they have provided a $3 million asset-based lending facility to an oilfield pipe construction, installation and maintenance firm (“Company”). The proceeds were used to refinance the Company’s existing debt and provide ongoing working capital.
A Canadian-based firm with deep experience, the Company provides an in-demand service for major exploration and production companies. But with plummeting oil prices, some banks have begun to reduce their loan portfolio exposure in the sector or jettison energy-related loan assets to appease regulators.
“The Company was in breach of one of their financial covenants and their bank terminated their loan. They needed a lender who was committed to the industry and was willing to support them through the market volatility,” said Bruce Sim, Senior Vice President of Trade Finance Solutions. “Based on their 40 years of experience in the Alberta oilfields and the quality of their customer base, we were able to provide a new facility fairly quickly to keep business flowing.”