CA$200 Million Financing Deal Boosts Morgan Construction

News Summary

Gordon Brothers has secured a CA$200 million financing deal for Morgan Construction, aimed at enhancing working capital, supporting new equipment purchases, and facilitating growth. The financing package includes a five-year revolving credit facility and an accordion feature, allowing for increased borrowing capacity. Alongside financial support, Gordon Brothers will provide long-term asset advisory services to ensure sustainable growth. This collaboration highlights Morgan Construction’s commitment to community involvement and operational excellence within Canada’s construction sector.

Gordon Brothers Supports Morgan Construction with CA$200 Million Financing Deal

Gordon Brothers, a notable international financial services and asset management firm, has announced a significant CA$200 million (approximately $146.3 million) financing deal aimed at facilitating the growth and operational needs of Morgan Construction. As one of Canada’s leading heavy civil contractors, Morgan Construction plans to utilize the funding primarily for working capital, new equipment purchases, and to further its expansion efforts, particularly in the energy and mining sectors.

The financing arrangement includes a five-year revolving credit facility valued at $109.8 million, providing Morgan Construction with flexible access to capital. In addition, the deal features an accordion feature worth nearly $40 million, enabling the company to augment its financing based on future needs. This structure not only enhances their liquidity but also positions the contractor for increased operational capabilities.

Long-Term Asset Advisory Services Included

In conjunction with the financing, Gordon Brothers will extend long-term asset advisory and consulting services to Morgan Construction through its subsidiary, Nations Capital. This move is designed to ensure that Morgan Construction can effectively leverage its assets and investments, further contributing to sustained growth and enhanced operational efficiency. Gordon Brothers specializes in offering both short- and long-term capital solutions tailored to client needs.

The partnership is built on a foundation of expertise, combining lending, advisory, and asset management to facilitate Morgan’s long-term growth. Gordon Brothers prides itself on its ability to collaborate with management teams, private equity sponsors, and lenders, thereby delivering comprehensive financial solutions to its clients.

Importance of Equipment Expertise

As part of its growth strategy, Morgan Construction has expressed the critical need for expert advice on equipment procurement, which is essential for maintaining its competitive edge. The equipment expertise provided by Gordon Brothers is expected to play a pivotal role in supporting the company’s operations and expansion efforts throughout Canada. This collaboration will enable Morgan Construction to enhance its service offerings and streamline its operational processes.

Headquartered in Edmonton, Alberta, Morgan Construction has established itself as a respected name in the construction industry. With a workforce of over 1,100 employees, the company actively collaborates with more than 16 Indigenous communities, underscoring its commitment to community engagement and sustainable practices. Founded in 1903, Morgan Construction focuses on serving clients with a broad spectrum of services that includes earthworks, environmental services, demolition services, and site development solutions.

Gordon Brothers’ Presence in Canada

With an extensive footprint across Canada, Gordon Brothers aims to bolster its support for local borrowers by offering custom financial solutions aligned with the unique challenges faced in the region. The firm has established more than 30 offices worldwide, spanning North America, Europe, the Middle East, Africa, and the Asia Pacific region. As part of its strategy, Gordon Brothers seeks to maximize liquidity through realizable asset value, equipping clients with comprehensive expertise in asset services, lending, financing, and trading.

This financing deal represents a significant opportunity for Morgan Construction to effectively enhance its operational capabilities and expand its market presence in Canada’s competitive construction landscape. As the collaboration between Gordon Brothers and Morgan Construction unfolds, the industry will be watching closely to see how this sizable investment reshapes the company’s trajectory and supports its future endeavors.

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Additional Resources

• The Star: CA$200 Million Financing for Morgan Construction
• Home Textiles Today: Gordon Brothers Liquidity Boost
• Chain Store Age: Linen Chest Credit Facility
• Cleveland.com: Joann Employees at Risk of Layoffs
• Encyclopedia Britannica: Construction Financing