MAG Trucks | GROWTH CAPITAL
MAG Trucks (MAG) upgrades and resells used delivery vehicles, principally to route owners in the FedEx Ground Division delivery system. MAG is a rapidly growing company and the only seller of used trucks into the FedEx system, having developed a substantial and proprietary expertise in the complex and stringent vehicle specification requirements established by FedEx. The Company is one of only a dozen approved vendors for FedEx and the only approved vendor for vehicles.
The Company was seeking to establish its own equipment financing entity to serve its customers and thereby capture additional profits from financing that was already being provided by third party lenders.
In spite of a very difficult lending environment and the Company’s lack of prior history in providing customer financing, Frontier conducted a successful market process with various lenders, investors and equipment financing providers that produced a variety of options for the Company. The Company was able to select and move forward with a financing provider under substantially favorable terms that will facilitate the Company’s superior growth rate.