In January 2020, Wright Service Corp. was seeking a capital solution to support future growth and provide more flexibility, including funding in multiple currencies given a growing presence in Canada. Wright historically funded its capital needs through equipment and bank financing, but strong growth in the business meant alternative, more flexible borrowing structures were now available.
Wright Service Corp. is a prominent leader in environmental services industries throughout the United States and Canada. Wright, founded in 1933, has been employee-owned since 2002 and is headquartered in central Iowa. Today, Wright Service Corp. is the parent to a family of companies that provide integrated vegetation management, technology solutions, consulting and operations, commercial environmental products, and residential and commercial landscaping, tree care, and other outdoor services.
We maintained a dialogue with Wright since 2013 and learned in January 2020 that management was seeking a capital solution to support future growth and provide more flexibility, including funding in multiple currencies given a growing presence in Canada. Wright historically funded its capital needs through equipment and bank financing, but strong growth in the business meant alternative, more flexible borrowing structures were now available.
We shared the benefits of a Pru-Shelf facility with Wright’s CFO and shared several examples of how the Pru-Shelf facility could fund long-term capital needs. Although COVID-19 posed new challenges as the transaction was getting underway, we completed all diligence, negotiations and closing remotely. Wright chose to partner with us given our experience in the industry, long-term calling presence in the Iowa market, ability to provide long-term capital and flexible funding, including multiple currencies. Furthermore, they appreciated our relationship-oriented approach and our ability to provide capacity to fund future acquisitions through the Pru-Shelf.
In October 2020, we established a 3-year multi-currency Pru-Shelf facility with Wright. Simultaneously, Wright also established a new banking relationship. Combined, the structure established with the Pru-Shelf facility and new banking relationship has the capacity and flexibility to support Wright's continued growth for many years.
We are pleased to call Wright Service Corp. a partner, and to have been able to support their funding needs during uncertain times. Our investment reinforces our ability to provide a tailored financing solution, as well as our ability to execute in an uncertain market environment.
