CGCF signs $25 million lease in oil sector

CG Commercial Finance (CGCF) has completed a lease transaction totaling $25 million comprised of three frac-pump spreads providing additional liquidity for the lessee, a large Texas-based oilfield services provider.

The company said the transaction is an example of its ability to fund large, complex transactions in a challenging credit and macro-economic climate. CGCF continues to secure funding for energy companies despite the current and historically low level of lending interest within the oil and gas industry, the company said, which it argued was testament to the strength of its leasing operations.

CGCF said it was able to provide competitive pricing and the required credit capacity despite the lessee’s rapidly changing credit profile resulting from depressed oil prices.

“As banks withdraw from a variety of industry sectors, CGCF continues to selectively work with best in class companies and management teams in out of favor industries to provide needed liquidity via equipment financing,” said Scott McCullum, CGCF president.

“While banks chase investment grade business in favored industries, CGCF focuses on providing value to middle market companies. We work hard and make the extra effort to comprehend complex macro-economic conditions, intimately understand the businesses for which we are funding, and successfully structure transactions to mitigate credit, industry, and collateral risk,” McCullum added.