First West Credit Union

First West Credit Union

May 09, 2013 12:00 ET

First West Capital Funds Multi-Million Dollar Deal for Rokstad Power Corporation

Funding for Western Canada-based power line construction company to meet increasing consumer demands for electrical power

LANGLEY, BRITISH COLUMBIA--(Marketwired - May 9, 2013) - Enforced rolling blackouts and power outages are becoming more common in North American cities as consumer demand on power grids steadily increases. This rising consumption combined with the need to rebuild an aging infrastructure are two reasons why Rokstad Power Corporation, a Western Canada-based leader in power line construction and maintenance services, is growing at an unprecedented pace. To help fund its expansion and meet these demands, Rokstad entered into a multi-million dollar funding partnership with First West Capital.

In British Columbia, Rokstad is a strategic service provider to BC Hydro for the Interior to Lower Mainland Transmission Project, the largest expansion to B.C.'s transmission system in the last 30 years. This includes the construction of a new 250 kilometre transmission line between two existing BC Hydro electrical substations between Merritt and Coquitlam.

As Aaron Rokstad, president and owner of Rokstad Power Corporation, shares, there have been no sustained investments in public power infrastructure in British Columbia since the 1950s, despite significant population growth and society's ever increasing demand for electricity. Rokstad says, "Similar to many major cities, this upgrade is greatly needed. Over the years, we've invested in turning Rokstad into a full scope service provider, with crews, equipment and expertise that work in any province across Canada. We're confident that our company will continue to grow because we're committed to meeting every power line need that a potential customer may have. But, in order to achieve this growth, we needed access to additional funds to finance working capital and purchase new assets, and for that, we looked to First West Capital."

"It's been a tremendous journey working with Aaron and the leadership team at Rokstad as they continue on their rapid growth trajectory," says Kristi Miller, vice-president of First West Capital. "The demand for electricity is increasing each day and this significantly strains and impacts the system. The only way to generate more power and distribute it to our rising population is to upgrade our aging infrastructure and that's where Rokstad comes in. Having a highly trained and qualified team to do this dangerous field work is critical and Rokstad is certainly one of the pre-eminent leaders in this industry."

Miller adds, "Rokstad's sales are tripling year over year, and the company has positioned itself for success by diversifying its customer base, creating a solid leadership team and securing notable contracts for the next few years. As a lender, we listened to what they needed from a financing partner and together we were able to come up with a flexible financing solution that's right for the business and will help them achieve their business goals. We're looking forward to being a part of Rokstad's journey and watching their success unfold in the years to come."

"As a Canadian-owned, private company, one of our biggest challenges is having access to the capital it takes to grow as fast as we have," adds Rokstad. "This agreement with First West Capital goes a long way in allowing us to continue to gain market share against our competitors, which are primarily foreign-owned, public companies. Because of this funding, we don't have to take a backseat in this booming power infrastructure market."

Rokstad continues, "It's been such a pleasure to work with Kristi and the First West Capital team to secure this funding. They truly went above and beyond to understand and see the growth potential in our business and asked us to do a deep dive into our business plan to address any questions they had. Not only were they thorough in their approach, but they really partnered with us along the way to make the numbers work and finalize a deal that was right for us."

About Rokstad Power Corporation

Rokstad Power Corporation provides Canada power line, transmission, power distribution, feeder cable, transmission line, emergency response, and right of way clearing services to the Western Canadian power industry. Based in Western Canada, Rokstad Power has grown fast in the wake of the huge demand for more electric power and the need to rebuild an aging infrastructure. In times of emergency, Rokstad Power responds to calls across North America to assist when and where they are needed. For more information, visit www.rokstadpower.com.

About First West Capital

First West Capital is a division of First West Credit Union, and is a $100 million fund established to provide subordinated debt and mezzanine financing to small- and medium-sized businesses. Led by Kristi Miller and Robert Napoli, the First West Capital team has more than 25 years of commercial lending experience including 18 years in subordinated debt financing. With on-the-ground knowledge of Western Canadian markets, First West Capital has the advantages of speed and flexibility. For more information, visit www.firstwestcapital.ca.

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