“This is a great financing event for the Company and for our shareholders. Not only does this facility provide us with an expanded working capital facility, but also with additional availability and flexibility while significantly lowering our cost of capital, recognizing the substantial amount of progress we have made over the last two years. I would like to thank Bryant Park Capital for identifying a great partner, facilitating a terrific deal and providing significant support from beginning to end.” Cem Hacioglu, President and Chief Executive Officer, Applied Natural Gas Fuels, Inc.
New York. February 9, 2011
Client Profile: Applied Natural Gas Fuels, Inc, (“ALT” or the “Company”) is one of two primary vehicle-grade liquefied natural gas (LNG) producers in the western United States. The Company produces, distributes, and sells LNG to transportation, industrial and municipal markets in the western United States and northern Mexico. The Company offers turn-key fuel solutions to its customers, including delivery of clean LNG fuel, equipment storage, fuel dispensing equipment and fuel loading facilities.
Situation Overview: Less than a year after a re-emerging from a Chapter 11 reorganization, ALT was looking to replace and improve the terms of its existing account receivable based revolving line of credit. At this point, the Company was not a candidate for a traditional commercial bank line of credit.
BPC Value Add: BPC worked closely with the Company to be able to show the progress the Company had made since the restructuring and the credit worthiness of ALT at this time. BPC leveraged its network of relationships among alternative lenders to procure multiple term sheets for the Company.
BPC Team: Bryant Park Capital Managing Directors Volfi Mizrahi and Kurt Bermond led the transaction
Deal Resolution: On February 9, 2011, the Company closed on a $2.5 mm accounts receivable revolving line of credit, with a higher line amount, significantly less restrictions, ability to grow with the Company at a cost of capital representing 60% reduction to the Company’s existing facility.