Client Objective:

A privately held energy services company specializing in environmental and power solutions required capital to acquire and deploy 90 trailer-mounted natural gas generators under a long-term rental agreement with a major upstream energy operator. The objective was to meet strict deployment timelines, expand recurring revenue streams, and maintain ownership of the generators to capture long-term residual value.

Key Considerations:

• Total Financing: $19MM USD structured to support staged generator deliveries and deployment milestones.
• Generators were placed under multi-year lease agreements with the end-user, ensuring predictable income and asset utilization.
• The client’s business model prioritized asset ownership and long-term value retention — generators were not to be sold but held on balance sheet for continued leasing after contract completion.
• A rapid deployment timeline required immediate vendor payments and synchronized funding with manufacturing and delivery schedules.
• Secure Capital designed a solution to maintain flexibility for future fleet expansions under similar contract frameworks.

Financing Structure:

• Structure: Multi-draw equipment financing facility totaling $19,000,000 USD.
• Funding Method: Direct vendor payments to streamline procurement and ensure timely delivery.
• Term: 60 months, aligned with primary lease duration and anticipated residual value cycles.
• Collateral: Trailer-mounted natural gas generators under long-term lease contracts, with insurance and maintenance provisions assigned to the borrower.
• Key Features:
– Staged disbursements tied to equipment shipment and acceptance milestones.
– Structured to match lease income with financing obligations for positive cash flow alignment.
– Designed to be replicated for future deployments as the company scales its equipment base.

Results:

• 90 generators successfully deployed on schedule, enabling the client to fulfill a large-scale rental contract under tight operational deadlines.
• Transaction provided immediate liquidity and working capital relief while preserving long-term asset ownership.
• Established a repeatable financing structure to support future energy asset acquisitions and fleet growth.
• Enhanced recurring revenue base through long-term leases while positioning the company for continued expansion within the energy transition and environmental services sector.
• Secure Capital’s rapid execution and flexible structuring ensured mission-critical equipment reached the field without delay — driving both operational and financial success.