SIT­U­A­TION

• The com­pa­ny is head­quar­tered in the Unit­ed States and pro­vides diver­si­fied oil­field ser­vices to Cabin­da Gulf Oil Com­pa­ny Lim­it­ed (CAB­GOC), a whol­ly-owned sub­sidiary of Chevron oper­at­ing off­shore in Ango­la, West Africa
• Since 2009, the Com­pa­ny has long-term con­tracts with CAB­GOC pro­vid­ing div­ing ser­vices for off­shore plat­form aban­don­ment, inspec­tion and main­te­nance pro­grams, off­shore ter­mi­nal oper­a­tions, and ves­sel rental and res­cue services
• In March of 2020, there was a severe decline in crude oil prices and oper­at­ing activ­i­ty caused by the OPEC+ deci­sion to not cap oil pro­duc­tion com­bined with a decrease in demand relat­ed to Covid-19 shut­downs. This result­ed in a sig­nif­i­cant decline in the Company’s rev­enue, prof­itabil­i­ty, and liquidity.
• The Com­pa­ny was able to sta­bi­lize rev­enues in April of 2021 and secure new long-term con­tracts for new instal­la­tion and div­ing contracts.
• Due to, the sig­nif­i­cant increase in rev­enue, CAB­GOC 60-day con­tract pay­ment terms, and chal­lenges in pro­cess­ing invoic­es from the field, the Com­pa­ny need­ed a com­mit­ted work­ing cap­i­tal facil­i­ty to fund its con­tin­ued growth

OUT­COME

• The Com­pa­ny retained Chi­ron Finan­cial, LLC (“Chi­ron”) as its exclu­sive invest­ment banker to arrange a work­ing cap­i­tal cred­it facility
• Chi­ron had to suc­cess­ful­ly address two very sig­nif­i­cant fac­tors: the Com­pa­ny oper­ates exclu­sive­ly in Ango­la and has a sin­gle cos­tumer rev­enue concentration
• Chi­ron mar­ket­ed the oppor­tu­ni­ty to over 250 cap­i­tal providers, received mul­ti­ple financ­ing term sheets, suc­cess­ful­ly nego­ti­at­ed to obtain the best terms for the Company’s growth strat­e­gy, nego­ti­ate cred­it insur­ance, and assist­ed with the final dili­gence process
• The facil­i­ty enables the Com­pa­ny to ensure a sta­ble rela­tion­ship with its ven­dors, fund cur­rent growth ini­ti­ates, and allow the busi­ness to bid on addi­tion­al con­tracts with the con­fi­dence of hav­ing suf­fi­cient work­ing capital

“Chi­ron was instru­men­tal in get­ting every­thing done and mak­ing this rela­tion­ship work.” — Karsna Daniel (Ocean Bank, Lender)