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CG Commerical Completes $77.1MM Operating Leases for Mining Company

December 04, 2014, 06:30 AM
Filed Under: Mining

CG Commercial Finance (CGCF) completed its 23rd schedule for one of the United States largest privately held coal mining operation, for a total of $77,162,139 for new and used above and below ground mining equipment and vehicles.  The leases are structured as GAAP Operating Leases to preserve the client’s liquidity and to manage certain financial ratios to stay within its lender’s covenants.

The client’s management chose CGCF based upon the company's ability to meet their aggressive funding timelines and to secure their required borrowing capacity during a very challenging environment for lending within the domestic coal industry. CGCF funded both highly specialized and used equipment, and provided residual investments in the equipment that allowed for GAAP Operating Lease treatment. Additionally, CGCF provided end of lease purchase financing for existing leases on the client’s books, paying off and aggregating many disparate lease providers. This enabled the client to have a single point of contact and one set of master documentation for all of their lease schedules.

As the client’s Chief Financial Officer stated in his letter to CGCF post funding, "Management appreciates your effort throughout the last two years in providing equipment leasing solutions for our mining operations. CGCF’s leasing solutions have enabled our Company to successfully implement a very significant capital program over that period that has resulted in substantial production improvements. Your knowledge of the industry and our Company, has proven to be very beneficial in securing the required lease financing."

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