Supporting a Transportation Equipment Lender for Success

Situation:
A specialty finance company focused on transportation and vocational equipment lending was looking to refinance its existing senior bank facility and secure additional capital to support growth. The lender had established strong relationships with brokers and dealerships and had built a portfolio of loans serving owner-operators and small fleet borrowers across the country.

Challenge:
While the platform had grown consistently over several years, recent market cycles, including a freight sector slowdown and recession, had tested performance. Elevated charge-offs during the downturn impacted historic results, though active collection efforts, monitoring, and improved underwriting helped restore recent performance. However, the owners continued to inject new funds to support the business through this time period. With liquidity needs increasing alongside new loan demand, the company needed a credit facility that could flex with origination volume and adjust to a changing transportation market. They also wanted to work with a senior lender that understood the nuances and fluctuations of their niche industry.

Solution:
Haversine provided a $20MM senior credit facility, including an accordion feature to support future growth. The facility was tailored to align with the lender’s operational and reporting cadence, with thoughtful advance and covenant structuring, that balance credit oversight with daily funding needs. The proceeds were used to refinance their incumbent lender and position the company to capitalize on improving freight activity.

Result:
The transaction provided the company with renewed capital flexibility and a platform for expansion. With a stabilized portfolio and origination momentum returning, the lender is well-positioned to meet growing demand in the transportation space. And, Haversine is proud to support that next phase of growth and partner with their organization.