Case Study: $20M Equity Raise Secures $150M Revolving Credit Facility
Case Study: $20M Equity Raise Secures $150M Revolving Credit Facility
A European bunker fuel trading house approached us with a mandate to strengthen its balance sheet in order to close a revolving credit facility (RCF) with a top-tier global bank. The bank was prepared to extend a $150M revolving credit line but required additional equity on the sponsor’s side to ensure adequate loss-absorption capacity and risk-sharing. Financely structured and executed a $20M equity capital raise that allowed the facility to be completed.
$20M
Equity Raised
$150M
RCF Secured from Bank
14 Weeks
From Mandate to Closing
The Challenge
The trading house had long-standing counterparties and robust trade flows in bunker fuel, but its equity base was insufficient to meet the bank’s internal leverage and risk thresholds. Without fresh equity, the $150M revolving credit facility could not be completed, limiting the client’s ability to scale and optimize trades. Private equity funds had shown interest in the sector but required a structured entry point and transparent governance.
Our Solution
We conducted a rapid underwriting process, stress-testing the company’s cash flows under volatility scenarios in the bunker fuel market. Based on this, we structured an equity capital raise targeting institutional and family office investors with appetite for energy trading exposure. Our team packaged the deal with a full credit memo, audited financial model, and governance enhancements that aligned with investor requirements.
Financely then arranged a targeted distribution process across our forward-flow network. We secured commitments for $20M in new equity, structured as preferred shares with governance rights, allowing the trading house to maintain operational control while meeting the bank’s balance sheet requirements.
The Outcome
Key Takeaways
- Equity raises can secure much larger credit facilities by meeting bank risk thresholds.
- Governance enhancements and structured terms attract institutional capital without diluting operational control excessively.
- Forward-flow investor networks accelerate closing timelines compared to ad hoc fundraising.
- Bunker fuel trading, a volatile but lucrative market, requires resilient balance sheet structures to obtain scalable funding.
Raise Equity Capital for Your Trading House
We specialize in structuring equity raises that secure revolving credit facilities, prepayment lines, and structured commodity finance. Our network includes private equity funds, family offices, and energy-specialized investors. Minimum engagement fee: $25,000.
Request a ProposalFinancely acts as an advisor and placement agent. We are not a direct lender. All financings are subject to credit approval, due diligence, and executed documentation. Engagement fees for equity capital raising mandates start at $25,000. Structures and terms vary depending on jurisdiction, sector, and sponsor profile.
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