Working with you to achieve your long-term goals
Tree Island is one of North America’s largest steel wire and fabricated wire product producers. The company’s products are used in industrial, construction, agricultural, and other specialty applications. During the economic downturn in 2008, many of the industries in which the company operated suffered from slowed sales. Construction on both the commercial and residential fronts had slowed, and steel rod pricing had dropped, contributing to declining financial performance for Tree Island. Demonstrating our understanding of the cyclical nature of the metals industry and our willingness to support our customers through the ups and downs of economic cycles, Wells Fargo Capital Finance stepped in to provide Tree Island with a $35 million senior secured credit facility that would help the company maintain its operations. With the appointment of Dale R. MacLean as Tree Island’s new CEO in July 2011, the company accelerated its turnaround strategy. Today, Tree Island has returned to profitability, has restored itself as an industry leader, and posted 16 consecutive quarters of improved EBITDA performance on a year-over-year basis, with the exception of Q2 2014, when the company made deliberate investments to support its growth strategy. As the company grew and operations ramped up, Capital Finance refinanced the credit facility to $60 million, and most recently, provided term debt financing to support new capital initiatives and a small acquisition in Calgary.
The Wells Fargo team has worked closely and collaboratively with us, and we have valued our relationship throughout the process as we stabilized the company and are now positioning it for further sustainable and profitable growth.- Nancy Davies, chief financial officer, Tree Island