New Orleans, LA – When a sponsor-owned government contractor needed additional liquidity during
the longest government shutdown in United States history, they set sail to partner with Republic
Business Credit. When their traditional bank facility wouldn’t support their growth, one of their peer
companies in the same sector who was one of Republic’s clients recommended Republic as a solution.
Due to the cyclical and large project nature of the shipyard repair business, they needed a
flexible and covenant free solution that leveraged their government and commercial receivables.
Additionally, the company sought a financing partner that understood the complexity of being a
sponsored owned company combined with dealing with government assignment of claims procedures.
Republic provided a $6.0 ledgered line of credit combined with a $500,000 supplemental
mobilization call facility that smoothed out any working capital gaps due to the processing of
government paperwork or payments. Additionally, Republic provided a covenant free solution to help
assist with any seasonal cash flow strains.
“Government shipyard contractors provide marine and defense skilled employment
opportunities and build strong communities where they operate,” said Stewart Chesters, Chief
Executive Officer of Republic. “As a commercial finance company that specializes in government
contractors, we are excited to partner with a business that supports our national defense efforts.”
Republic Business Credit supports private equity sponsors and other capital partners across the United
States to create value, implement turnaround plans and growing successful businesses.