Background

Headquartered in Lincoln, Turbine Efficiency Limited (TEL) 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 business has been owned by ESO since 2016; however, the debt facility for the business was provided by a debt fund that was looking to exit its UK platform. TEL wanted to find a responsive and flexible lender to provide the level of funding required to achieve its growth plans.

Action

FRP was appointed to advise the company on a new debt facility to replace the debt fund, which recognised the significant build in inventory levels and provided maximum flexibility. As well as the logistical issues associated with COVID-19, this represented a challenging transaction for many lenders, particularly given the complex and inventory heavy nature of the company’s collateral – which not only covered new equipment but also used and rejuvenated gas turbines and associated parts – and the global nature of Turbine Efficiency’s sales.

Outcome

FRP sourced a new three-year, £6.2 million committed asset-based lending facility, through a lender with extensive experience of delivering complex transactions. The lender worked closely with FRP and with the management team to understand the needs of the business, and delivered funding that generated significant additional headroom to enable TEL to achieve its impressive growth plans.