The Industry and Company

A leading environmental solutions company (the “Company”) sought financing to support its growing client base. The Company serves a critical role in the repurposing of power generation byproduct. Such byproduct contains contaminants like mercury, cadmium, and arsenic, requiring proper management.

In addition to providing key resources to handle power generation byproduct, the Company also provides maintenance and technical services for routine operations at coal and nuclear power plants.  Further, as the power generation industry shifts towards renewables, safe and compliant management of such plants is unsurprisingly vital.  Importantly – the Company has faced essentially no business interruptions due to the current COVID-19 pandemic, as its work is deemed essential and time-sensitive.

The Situation

The Company, which had equity support from a sponsor, was seeking financing, via new equipment leases and sale-leasebacks. Proceeds would be used to bolster liquidity and purchase new assets. The financing, which closed earlier this year, is secured by mission-critical equipment on various existing and new project sites. The transaction was introduced to Atalaya through a bank-owned equipment financing group. The equipment leased will enable the Company to complete several diverse projects for major clients.

The Result

In Q1 of 2020, Atalaya closed an initial investment of approximately $5 million, allowing the Company to continue servicing its existing customers and complete projects with new clients. Atalaya sees the potential for the transaction to grow beyond the initial funding, should the Company have needs for additional equipment later this year.