LEASE RENEGOTIATION & CAPITAL RAISE

Client Situation:

A PE-backed flatbed transportation and logistics company with $1.3B revenue and $50M annual capex budget for vehicles, desired to audit their existing lease relationships and reset go-forward standards.

Engagement Objectives:

• Audit and evaluate current leasing standards compared to market.

• Ensure existing leasing structures, terms, conditions, and pricing are at/better than current market.

• If unable to improve incumbent, identify competitive lease providers.

• Negotiate new lessor contract terms and pricing

• Make certain that lease lines of credit are in place to accommodate $50M annual capex spend.

• Streamlined methodology and processes.

• Ultimately, reduce overall lease financing costs from previous years.

Engagement Objectives:

• Working with multi-year incumbent lessor to modify and improve existing model to meet market standards.

• Identifying and securing alternate, transparent lease providers that can meet/exceed the newly developed leasing standard.

• Ensuring all Client Stakeholders had a voice in the process and were informed in real-time on progress.

Client Results

  • Delivered highly competitive alternate lease lines of credit options ON TIME!
  • Negotiated all-in interest rates that were >800 basis points lower than the incumbent lessor resulting in the following savings:
  • >$900k Day 1
  • >$3.4M Year 1
  • $17.4M over lease lifecycle
  • Co-created repeatable, efficient, lease administration process saving time and ensuring compliance for each future lease transaction.
For more information please contact:
Todd Wyles
(443) 629-8871
twyles@optimusgroup.com
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