When two leading aviation repair companies under the same ownership, Hialeah-based A Professional Aviation Service (APAS) and Diverse Aircraft Services (DAS), first came to us last year, they were in an enviable position—with over 30 years of experience, they had enjoyed a rapid growth in the demand for their repair services. Both these companies are experienced in providing commercial and military services to clients worldwide. They have Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) certifications in wing repairs, on-ground aircraft support, pneumatics, flight controls, fuel components, composite/sheet metals, generators, integrated drive units, and landing gears. To help meet this demand for growth consisting of Capital Expenditure (CAPEX) needs and working capital needs, our lending team led by Hector Peña structured a solution under one credit facility.
That meant setting up a credit facility designed to provide the companies with an immediate capital injection and long-term financing flexibility. The three-pronged creative solution addressed the companies’ working capital needs with an asset-based line of credit, a term loan to finance existing equipment, and a line of credit converting into a term loan for future CAPEX. This CAPEX line gives the company the flexibility to acquire the equipment, implement it on their production line, train the technicians, and begin to generate a return on investment at a low initial cost of capital. Now, with the ability and flexibility to finance their working capital needs and invest in capital expenditures at a lower borrowing cost, the executive team at both aviation repair companies can focus on growing revenues and expanding their customer base.
After First American Bank approved an asset-based line of credit and equipment loan back in January, the companies were able to substantially expand their operations. This expansion included acquiring specialized equipment, obtaining new certifications for the repair of specific airplane parts, and reaching new markets. As their growth accelerated, the companies required additional working capital and funding for capital expenditures, which First American Bank met by increasing the credit facility. With this expanded financial flexibility, the executive teams at both aviation repair companies were able to focus on scaling their revenues and expanding their customer base. We are proud to have accommodated this growth with a swift turnaround by providing an increased credit facility to address their evolving needs.
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