“Engaging with NFS was hassle-free and we were happy that we found a solid partner to fund such a large and important deal,” said Todd Tackett of CRS. NFS is experienced in financing deals of this size, so when CRS and NFS connected, there was no problem.
SUMMARY
Construction and Reclamation Services LLC (CRS) is an early stage environmental recovery company that rebuilds the land damaged by mining activities. Seeking to protect and grow its 63-employee base, CRS needed to secure capital, which can be difficult as an early stage company. The capital requirement was $8.2 million, so it was a significant challenge.
- CRS required funding for the new equipment to maximize employee efficiency and reduce downtime but had a limited credit history.
- Obtaining financing from NFS enabled CRS to complete its projects ahead of schedule and expand its employee base.
This is how CRS was able to work with NFS Leasing to support the large transaction and find a tailor-made financial solution to boost its productivity.
THE CLIENT
Construction and Reclamation Services LLC (CRS) has only been in operation for some time. As a spin-off for a mining company, CRS knew that the industry needed a reclamation company to better service mining sites and the environment.
As a reclamation company, CRS takes land that has been stripped down for mining and reclaims it. This is accomplished by planting trees, creating lakes and reservoirs, or restoring the land to its original state. This is an important requirement for mining companies because many states need a remediation plan to approve a mine site.
THE CHALLENGE
As a newly created business, the equipment it owned was old and outdated, and inefficient for some of the work it was trying to complete. Because of ongoing equipment repairs, employee productivity was not at the desired level. With the decline in employee production, the CRS team advocated for better equipment. The equipment should be bigger, faster and stronger to allow CRS to support multiple large-scale projects at once.
As an early stage company, CRS struggled to find the right financial partner. It had difficulty qualifying for the selection criteria required by many financial institutions and finding a partner willing to fund a transaction of this size.
THE SOLUTION
CRS knew that to establish itself as a reputable reclamation company, it needed flexible and timely funding. The financing needed to be flexible enough to fit within CRS’s long-term plans and needed to be completed quickly. Obtaining the equipment lease was the first step of its solution, the next key step would be to find the right equipment.
As part of the search for financial solutions, CRS identified NFS Leasing as a potential partner and quickly realized that NFS was the perfect partner for CRS. NFS was straightforward and easy to use and had the capabilities to finance the large-scale operation. NFS listened attentively to CRS’s history and plan and was able to quickly prepare a creative solution to finance its $8.2 million in equipment.
EXECUTION
The interactions between CRS and NFS Leasing were straightforward, as both sides worked to find a solution. “I had a great conversation with NFS on what we wanted to do with the equipment and what we were seeking in a lease agreement, and thankfully, NFS helped us find a solution.” said Todd Tackett of CRS.
This has been a very positive experience. He went on to say, “While I have been in the mining industry for 24 years, I had never done a deal this large. Engaging with NFS was hassle-free and we were happy that we found a solid partner to fund such a large and important deal.” NFS is experienced in financing deals of this size, so when CRS and NFS connected, there was no problem.
RESULTS
Ultimately, the new equipment allowed CRS employees to operate with maximum efficiency, with virtually no downtime devoted to repairing older machinery. For this reason, it has been successful in maintaining a more engaged employee base. At present, CRS has 63 employees but expects to increase its employee base by 15% because of the new equipment.
CRS was able to utilize the equipment at several sites, with one site receiving most of the equipment. This site was for a project, that Tackett said, “Would typically take two to three years to complete. But now with the new equipment and the increased employee productivity, we expect it to be complete within one year.” It’s a 100% improvement on this site.
