Asset Based Lending -
Arbuthnot Commercial ABL powers THREE60 Energy’s growth with £4.5m funding facility
Arbuthnot Commercial Asset Based Lending (“ABL”) has completed a flexible £4.5m funding line to support the growth of THREE60 Energy; a private equity backed global energy services group.
The structured ABL facility, which comprised a £3m accounts receivable line and a £1.5m cashflow loan, will fund the increased working capital requirement associated with the next stage of growth following significant new contract wins, and contribute towards future acquisitions.
In the face of challenging market conditions created by the dual impacts of COVID-19 and the global oil price downturn, THREE60 Energy has succeeded in achieving extensive international expansion, winning multi-million-pound contract awards for Duty Holder O&M services for Norwegian operator DNO and the FPSO Intrepid.
Backed by Simmons Private Equity, the Aberdeen-headquartered group generated revenues in excess of £50m in 2020 reflecting increased demand for its digitally enhanced services. The business offers a variety of services throughout the asset lifecycle to both the onshore and offshore energy industry, from subsurface, wells, engineering, construction to operations management. In addition, the group is actively delivering low carbon solutions to support a net-zero economy.
Kevin Sutherland, Group CFO at THREE60 Energy said:
Securing this funding is a real game changer for us and means we can fully capitalise on the positive 2020 we had with further expansion. It was important for us to select a lending partner who would understand the dynamics of our business and our customer base, and Arbuthnot Commercial ABL achieved that.
From the outset, Arbuthnot Commercial ABL involved their key decision makers, which resulted in a smooth transaction. They demonstrated a genuine enthusiasm for our business, which provided us with a high level of comfort and reassurance. There are striking parallels between our businesses; we share a challenger mentality and have close-knit management teams that can adapt and react quickly.
Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said:
“This was an excellent opportunity for us to partner with a strongly performing and well-invested, private equity backed business with a highly experienced leadership team. In the current deal-making environment, the mix of asset-based lending and cash flow loans, continues to prove itself time and time again in providing the level of funding and flexibility that ambitious businesses need to accelerate growth and pursue future buy-and-build opportunities.”
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Registered in England and Wales no. 10915339. Arbuthnot Commercial Asset Based Lending Limited’s registered office is Arbuthnot House, 7 Wilson Street, London, EC2M 2SN. Arbuthnot Commercial Asset Based Lending is not authorised and regulated by the Financial Conduct Authority.