Specialist asset-based lender, BREAL Zeta has completed a £6.2m funding facility for Turbine Efficiency Limited, an ESO Capital portfolio company.
Company: Turbine Efficiency Limited
Line Size: £6,200,000
Description: BREAL Zeta delivers £6.2m ABL facility to help Turbine Efficiency propel future growth
Specialist asset-based lender, BREAL Zeta has completed a £6.2m funding facility for Turbine Efficiency Limited, an ESO Capital portfolio company. The facility will enable the business to deliver on its ambitious growth strategy.
Headquartered in Lincoln, Turbine Efficiency is a leading independent provider of gas turbine maintenance, repair and overhaul services, offering a range of light industrial gas turbine equipment solutions for the power, oil and gas and industrial markets. Established in 2000 and operating with world class facilities, the company is a leading independent provider of specialist services to SGT-100 (Typhoon), SGT-200 (Tornado), SGT-300 (Tempest), and TA gas turbines.
BREAL Zeta was introduced to the transaction by FRP’s Debt Advisory team. Legal advice was provided by Crowell and Moring. Due diligence was undertaken by European Valuations.
James Willows-Chamberlin, Finance Director at Turbine Efficiency, said: “Having outgrown our previous facility, we were looking for a responsive and flexible lender with the appetite to provide the level of funding we require to achieve our growth plans. Our collateral is typically regarded as being unconventional by high street lenders, as it not only covers brand new OEM but also used and rejuvenated gas turbines and associated parts. The team at BREAL Zeta was open-minded and pragmatic throughout the process, taking the time to understand our business model and how value is realised and maintaining the momentum of the transaction, despite the challenges of Covid-19.”
He continued: “The size of the BREAL Zeta facility will allow us to smooth the business’ cashflow, as well as take advantage of exciting market opportunities. The additional capital available from BREAL Zeta also opens up huge potential for us to accelerate the growth of key revenue stream, engine sales, by sourcing used turbines as they become available on the market, which we can then overhaul and sell on for good margins, boosting profitability.”
Andy Dimmock, Partner, FRP Advisory, commented: “Aside from the logistical issues associated with Covid-19, this would have been a challenging transaction from many lenders’ perspectives, particularly given the complex and inventory heavy nature of the collateral and the global nature of Turbine Efficiency’s sales.
FRP has worked with the team at BREAL Zeta on many occasions and recognises their extensive experience in delivering complex transactions. This, coupled with the recent increase in their access to capital, meant that BREAL Zeta was well placed to meet Turbine Efficiency’s key funding requirements. Prior to this transaction, Turbine Efficiency had won a number of major contracts with the limitations of the previous facility restricting their ability to maximise growth. BREAL Zeta worked closely with FRP and with the management team to understand the needs of the business and delivered exactly what they said they would, generating significant additional headroom to enable Turbine Efficiency to achieve its impressive growth plans.”
Jamie O’Neill, Regional Sales Director, London, who led the transaction for BREAL Zeta, said: “It is testament to the management team at Turbine Efficiency who, whilst continuing to manage the business through these extraordinary times and win new business during lockdown, were able to take the time to really explain to us the story of the business’ success, their current operations and their dynamic plans for the future. This insight and teamwork was invaluable in delivering a bespoke and flexible funding facility that both supports working capital requirements and fuels the business’ exciting growth strategy. Working closely alongside FRP through the transaction meant that the process, regardless of national lockdown, was seamless and delivered an outstanding outcome.”
Rob Wakeford, Managing Director, UK Sales at BREAL Zeta, concluded: “We were delighted to work with the management team and their advisers on this transaction. Our team was ideally positioned to support this deal due to the ability to be flexible around the asset mix and creative around the deal structure. Above all, we look to ensure that the optimal level of funding is available to allow the business to scale and follow its growth path without constraint. As a deal team, the tight management of the process, financial performance and collateral ensured a great outcome for Turbine Efficiency in maximising working capital to power the company’s ambitions.”
About ESO Capital:
ESO Capital (www.esocapital.com) is a London headquartered multi-strategy investment firm, focused on providing senior capital solutions to European small- and medium-sized enterprises. With over 75 deals completed and more than €1.1 billion of funds raised to date, the ESO Capital team have the expertise and flexibility to invest up to €40 million in any given transaction, across the capital structure, from senior debt to equity. The team works closely with business owners and management teams to structure innovative, bespoke financing solutions and offer enhanced portfolio company support.