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CG Commercial Finance Completes $25MM Frac Equipment Lease

December 15, 2015, 07:05 AM
Filed Under: Energy

CG Commercial Finance (CGCF) announced it has completed a lease transaction totaling $25,000,000 comprised of three Frac-Pump Spreads providing additional liquidity for the Lessee, a large Texas-based oilfield services provider. This transaction is another recent example of CGCF’s ability to fund large, complex transactions in a challenging credit and macro-economic climate. CGCF continues to secure funding for energy companies despite the current and historically low level of lending interest within the Oil and Gas Industry.

CGCF provided competitive pricing and the required credit capacity despite the Lessee’s rapidly changing credit profile resulting from depressed oil prices. Additionally, CGCF’s deep capital markets capability provided an additional $25MM credit approval further improving the Lessee’s liquidity position.

CGCF’s deep due diligence and broad portfolio capabilities have proven essential for many companies operating within the Energy Sector to obtain the necessary liquidity, structure, and flexibility to continue to operate in a down commodities cycle.

“As banks withdraw from a variety of industry sectors, CGCF continues to selectively work with best in class companies and management teams in out of favor industries to provide needed liquidity via equipment financing. While Banks chase investment grade business in favored industries, CGCF focuses on providing value to middle market companies. We work hard and make the extra effort to comprehend complex macro-economic conditions, intimately understand the businesses for which we are funding, and successfully structure transactions to mitigate credit, industry, and collateral risk.” W. Scott McCullum, President, CG Commercial Finance.

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