Case Study: Wabi International
$16 Million Senior-Secured Credit Facility
Here's what we saw at Wabi International. A
Canadian infrastructure construction company that was transitioning
its market focus to faster growing sectors of the global economy.
Wabi quickly established a market reputation that eventually led to
its merger with one of the largest energy contractors in the world.
Others didn't see it.
Third Eye Capital structured a mixed revolving and term credit
facility for Wabi that provided working capital during the
company's market transition. Their incumbent credit provider,
a major Canadian Bank, had announced its intentions to
reduce overall construction exposure in its commercial loan
portfolio. Wabi was an unfortunate casualty of this decision,
despite its strong growth and recent top business award from this
Wabi was in the midst of transitioning from an engineering
construction firm with deep mechanical expertise primarily focused
on the forestry sector to a highly skilled construction management
company focused on the energy sector with cost plus and
time-and-materials contracts. Wabi possessed a large, captive and
flexible labour pool with advanced engineering talent, that we knew
would be able to make the market sector transition from forestry to
energy. We saw an experienced management team with a strong
national reputation. We saw a company with vertical expertise that
enabled a move away from an industry like forestry, experiencing a
cyclical downturn, and a move towards the fastest growing sectors
of the global economy. Others saw only risk; we saw
OUR APPROACH & OUTCOME
We help good companies like Wabi, that cannot access
conventional credit due to perceived risk, size, complexity, or
timing, reach their business goals. We assess transactions from the
perspective of the business owner, and match our capital to not
just business need but also asset value potential. How does the
company make money, what is its sustainable competitive advantage,
and how we best unlock value, are some of the key questions we try
to answer with our portfolio companies.
We aligned ourselves with Wabi by providing a bespoke financing
solution that drew upon our practical business experience in
construction services. Wabi eventually unlocked value for all of
its stakeholders through a buyout to one of the world's largest
energy infrastructure companies. We saw so Wabi could prosper.
"At Third Eye Capital, we pride ourselves on taking a
broader perspective in order to grasp a company's full potential.
We look through another lens to see the latent value hidden in
assets which allow a company to be viable and thrive."
- Arif N. Bhalwani