Transactions
Every organization has a unique past and distinct future. We spend the time necessary to understand a company’s situation and its needs; making sure not to miss value opportunities. We develop customized, benefit-focused leasing structures for each client. And upon acceptance, we coordinate a quick closing process and equipment delivery. Here are some example transactions for review.
How Leasing with an Independent Saved One Company 35%. The customer had 2,500 desktops and laptops on lease with TCP and was ready to upgrade. Most of these machines were two or more years into their three-year lease. The customer was concerned about the per-desk downtime required for the upgrade, especially considering they would soon be visiting each desk side a second time to replace the equipment at end of lease. Delaying the upgrade, however, was not an option for the customer.
Six-month construction period allowed for progress payments to a manufactuing vendor. An aerospace manufacturer in the Midwest required a new piece of manufacturing equipment that was made in Italy. The vendor required progress payments totaling up to 90% of the equipment cost prior to the equipment being shipped. The customer was seeking a finance partner to make the payments over a 6-month construction period. We structured a lease facility that allowed us to make the required progress payments. The lease was structured as a $1.00 buyout per the customer's request, payments were tied to lease fundings and as such, payments escalated over time.
$4 Million lease line of credit created for publicly traded medical service company in New York. Company had received contracts to perform work at a large number of hospital sites across the country. They needed a leasing solution that would fund equipment located at hundreds of locations, pay for equipment as it’s installed over an extended timeframe meet strict budgetary and financial reporting goals, allow them to return equipment at lease expiration. TCP's structure created lease schedules and paid vendors on a quarterly basis. The lease qualified as an operating lease under FASB 13 and was carefully crafted to meet the client's budget requirements. Our solution provided flexible end of term options which allowed them to either purchase, continue leasing or return the equipment.
$3 million participated lease transaction allow company to secure equipment. A Western manufacturing firm approached us with a request to structure a lease for new and used equipment it needed to meet its increased production schedule brought about by a significant increase in customer orders. The firm was operating under loan covenant restrictions and had all but exhausted its line-of-credit from its primary banker. The firm had a net worth of $700,000. Given the size of the transaction when compared to their equity, we structured a facility that would distribute the risk among three different lenders. By structuring an Operating Lease, we were able to help our customer work around its covenant restrictions while reducing the company’s cash flow and accelerating its write-off as compared to conventional bank financing.
An energy company with its own fleet of servicing vehicles needed to raise cash. TCP structured a sale-leaseback transaction that allowed the firm to continue using the fleet, while obtaining cash via its sale. This allowed the growing company to acquire another firm without having to enter the public markets for expensive equity-financing. TCP was also able to secure the company an outsourced maintenance contract for care of its fleet – in a more cost effective manner than they were previously.
A small veterinarian practice in Atlanta needed to update its examination equipment. The owner felt like the limited amount they needed would not represent an attracting transaction to leasing companies, but needed the flexibility. TCP was happy to work with the Doctor to structure a lease that met her needs and got the new equipment delivered in just a few days. This was accomplished via our "App Only" program for medical professionals.