A new lending division of First West Credit Union is off to a strong start with a multi-million dollar expansion deal with an international oil and gas pipeline company.
The $6.6 billion First West in British Columbia, Canada, said its division, First West Capital, is a $100 million fund established to provide subordinated debt and mezzanine financing to small- and medium-sized businesses.
First West Capital has secured a deal with Sealweld Corp., a Calgary, Alberta-based manufacturer of valve sealants, grease products, fittings and pumps to the oil and gas pipeline industry. The 43-year old company has additional offices in Houston and the United Arab Emirates and serves clients in more than 100 countries.
Sealweld recently secured expanded contracts with two major clients, Shell Canada Energy and the Saudi Arabian oil company, Saudi Aramco, and was in need of additional working capital to meet clients' growing needs and demands, according to First West.
“The capital that First West Capital has provided us will facilitate the growth required for our company to be a leader in our international markets,” said Andrea Arient, executive vice president of Sealweld.
“Throughout the process, we found the First West Capital team to be very easy to work with; in particular, we were very impressed with their quick understanding of our business model, exceptional communication skills and their ability to adapt to our needs,” Arient said.
Robert Napoli, vice president at First West Capital, said the credit union was impressed with how Sealweld has developed proprietary and innovative products that are now being exported to over 100 countries around the world.
“Together with their senior financing partner, HSBC, we were pleased to help,” Napoli said. “We are happy to be a part of their expansion plans and provide them with the right financing and repayment schedule to help to facilitate their company's growth.”
First West said it is British Columbia's third-largest credit union with more than 169,000 members, nearly 1,400 employees and 37 branches throughout the province.