CASE STUDY: Construction Company

THE DEAL

SIZE: $8 Million
LOCATION: Northern Alberta
SECTOR: Construction
LOAN TYPE: Equipment Term Loan

THE REAL WIN FOR DWA.

This capital supports the employment of a large team of skilled workers, enhances our client's ability to deliver services across northern Alberta, and contributes to the region’s infrastructure growth and economic vitality.

THE CHALLENGES.

• Significant Cash Burn: Substantial capital expenditure required to develop essential infrastructure

• Negative Cash Flow: EBITDA projected to remain negative for at least two years

• Equity Reliance: Ongoing reliance on equity injections to cover near-term cash flow shortfalls

RISK MITIGANTS.

• Private Equity Backing: Strong backing from a private equity partner with substantial financial commitments and willingness to provide continued support

• Valuable Collateral: Highly marketable construction equipment serving as a strong security base for financing

OUTCOME.

• The $8 million equipment financing arrangement catalyzed further investment from key stakeholders