Client Objective:

A long-standing coal mining operator, recently permitted to open a new surface mining site, required liquidity to transition operations from legacy locations and support new site development. The company owned a substantial fleet of high-value mining equipment—excavators, haul trucks, loaders, and crushers—which presented an opportunity to unlock trapped capital while maintaining uninterrupted use of the assets. Secure Capital was engaged to structure a financing solution that optimized liquidity, preserved operational control, and supported the company’s broader expansion plan.

Key Considerations:

• Total Financing: $15MM USD, structured across two parallel funding schedules to align with differing equipment appraisals and internal lender approvals.
• The client’s timing sensitivity required phased closings to meet operational start dates for the new site.
• Secure Capital coordinated with a secondary lender to accommodate total project scale and ensure synchronized funding without disrupting mining schedules.
• Equipment included a diverse range of surface mining assets—many recently refurbished—requiring detailed valuation, lien release management, and site verification.
• The transaction followed more than a year of strategic engagement and financial planning with the client, positioning Secure Capital as a trusted long-term partner.

Financing Structure:

• Facility Size: $15,000,000 USD
• Structure: Sale-Leaseback on fully owned mining equipment.
• Term: 60 months with fixed-rate lease payments and flexible buyout provisions at maturity.
• Collateral: High-value mobile and fixed surface mining equipment, independently appraised and insured.
• Key Features:
– Immediate liquidity generated through asset sale while preserving equipment use via long-term leaseback.
– Parallel funding schedules to match staggered operational needs.
– Covenant-light structure emphasizing operational continuity and minimal administrative burden.
• Designed to reduce balance sheet strain, enhance liquidity, and maintain asset control through an efficient leaseback mechanism.

Results:

• $15MM USD in capital unlocked from previously unencumbered equipment, strengthening the company’s working capital position and supporting site mobilization.
• Enabled a smooth operational transition to the new mining site without disrupting production or workforce deployment.
• Strengthened balance sheet flexibility, allowing reinvestment into fleet maintenance, site preparation, and environmental compliance.
• Marked the culmination of a strategic, year-long partnership between Secure Capital and the client, resulting in a tailored financing solution that combined speed, structure, and long-term scalability.
• Positioned the operator for sustained output growth and improved cost efficiency across its expanding portfolio of mining sites.