CLIENT
A Texas-based telecommunications infrastructure contractor was awarded a $78 million bonded contract with the State of Texas to expand broadband access across a rural county. The project involved the construction of nearly 1,000 miles of fiber infrastructure and represented a significant increase in size and scale for the company. Despite the larger scope, the company was well positioned to execute based on its experience and operational capabilities.
CHALLENGE
Milestone-Based Payment Structure Created a Working Capital Challenge
The contractor could only bill after completing 25% milestones, requiring the company to fund labor, materials, and ongoing project costs long before receiving payment. The gap between costs incurred and payment received created pressure on organizational cash flow at the exact moment growth opportunities were increasing.
SOLUTION
A $28 Million Project Financing Facility
Mobilization Funding structured a $28 million project financing facility tailored around the project’s execution schedule and billing milestones.
Using a detailed project cash flow model, the facility provided the liquidity needed to fund:
- Upfront material purchases
- Payroll and labor expenses
- Project-related operating costs
- While preserving the company’s operational capital for growth
RESULTS
Funding Fuels Performance and Growth
With the financing structure in place, the company successfully mobilized and executed the project while maintaining healthy cash flow throughout the construction cycle. The facility enabled the contractor to:
✓ take on a transformational opportunity
✓ expand backlog
✓ strengthen its relationship with the State of Texas
✓ position the business for continued growth within the broadband infrastructure sector
