eCapital provides $10m ABL facility to Florida flight training company

eCapital has provided a $10 million asset-based lending (ABL) revolving credit facility to a Florida-based flight training company undergoing an operational and financial restructuring.

The facility will provide additional working capital to support the company’s day-to-day operations while management implements a strategic turnaround plan.

The flight training business is operating in a capital-intensive sector where companies face significant costs associated with aircraft fleets, maintenance, regulatory requirements and staffing.

eCapital was introduced to the business by its newly appointed CFO and worked with the management team to structure a working capital facility around the requirements of the restructuring.

The turnaround programme includes asset sales, cost reductions and wider operational changes designed to improve the company’s financial position and support future growth.

The ABL facility includes an enhanced advance rate against accounts receivable and a foreign receivables component without the requirement for credit insurance. Its structure also allows an existing split cash flow term loan to remain in place.

According to eCapital, the structure provides the company with liquidity to maintain operations while giving management greater flexibility to implement the restructuring programme.

“Our role was to provide a financing solution that supports operational stability today while creating room for the business to pursue its longer-term objectives.”