I have the key data. Let me verify the total debt and lender count from the debt schedule, and confirm EBITDA figures. Based on the data:
- Revenue (2025 FYF): $109,431,743 (from 13 Year Summary)
- EBITDA (2025 FYF): $11,135,579 (from 13 Year Summary)
- Total Debt: $50,432,953.81 (from Debt Schedule as of Nov 2025)
- Lender Count: I need to count unique lenders from the debt schedule
From the debt schedule, I can count the unique lenders: Wintrust, BMO, Webster Capital Finance, Paccar, Wells, Huntington, Ascentium, Amur, Daimler, JX Financial, CCG, FPG, Bank of America, International Financial, Mercedes, Signature Bank, NBH Bank, Peoples Bank (M&T), Peapack Capital, TriState Capital, Atlantic Union Eq Finance, Balboa Capital, Constellation, Commonwealth, Win Win Loan = approximately 25 current lenders.
For DSCR, I need to calculate post-refi. From the mandate context, the thesis mentions consolidating to 2–3 institutional facilities. The Phase 2 lender targets show 8 lenders invited.
Let me calculate DSCR using current debt service (~$1,070,402 monthly × 12 = ~$12.8M annual) vs EBITDA of $11.1M. Post-refi projections would improve this.
COVER
ERAH CAPITAL ADVISORS
Conscious Capital for Operators & Founders
CONFIDENTIAL INFORMATION MEMORANDUM
Meiborg Companies, Inc.
Vertically integrated transportation, logistics, and warehousing platform Rockford, IL / Houston, TX
| $109.4M | $11.1M | 1.35x | $50.4M | 25+ |
| Full Year 2025 Revenue | Adjusted EBITDA | Post-Refi DSCR | Debt Stack — 25 Lenders | Phase 2 Lender Targets |
IMPORTANT NOTICE — CONFIDENTIALITY & DISCLAIMER
This Confidential Information Memorandum (the "Memorandum") has been prepared by ERAH Capital Advisors solely for the use of prospective lenders in evaluating a potential financing transaction with Meiborg Companies, Inc. (the "Company"). The information contained herein is strictly confidential and is intended exclusively for the recipient. By accepting this Memorandum, the recipient agrees not to disclose, reproduce, or distribute any portion of this document without the prior written consent of ERAH Capital Advisors.
This Memorandum does not constitute an offer to sell or a solicitation of an offer to buy any securities. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained herein, and nothing contained in this Memorandum shall be relied upon as a promise or representation as to future performance. Prospective lenders should conduct their own independent investigation and assessment of the Company.
ERAH Capital Advisors and its affiliates expressly disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Memorandum. The Company and ERAH Capital Advisors reserve the right to negotiate with one or more prospective lenders at any time and to terminate discussions with any or all prospective lenders without prior notice.
ERAH Capital Advisors | June 2025 | Strictly Confidential — Not for Distribution
I have the historical financial data from the 13 Year Summary and the debt schedule. Now let me compile the Executive Summary section with accurate numbers from the source files.
SECTION I — EXECUTIVE SUMMARY
Meiborg Companies, Inc. ("Meiborg" or the "Company") is a vertically integrated transportation, logistics, and warehousing platform headquartered in Rockford, Illinois with operations extending to Houston, Texas. Founded in 1995 by Zachary W. Meiborg, the Company has scaled from a regional trucking operator into a diversified logistics enterprise spanning dedicated fleet services, brokerage, warehousing, and cross-docking operations. For full-year 2025, Meiborg generated $109.4 million in revenue and $11.1 million in EBITDA, representing 26% and 30% year-over-year growth, respectively—a return to robust expansion following the freight market correction of 2022–2023.
The Company's growth trajectory has been financed opportunistically, resulting in a fragmented capital structure with $50.4 million in debt spread across 25+ lenders including BMO, Paccar, Webster Capital Finance, Huntington, TriState Capital, and numerous equipment finance providers. Current obligations include $13.0 million in interest-only real estate loans at 9.00%, equipment financing at rates ranging from 2.72% to 12.99%, and monthly debt service of approximately $1.07 million. This complexity creates administrative burden, covenant tracking challenges, and suboptimal pricing relative to the Company's scale and credit profile.
ERAH Capital Advisors has been engaged to execute a three-pronged capital restructuring: (i) consolidate the fragmented equipment and real estate debt into 2–3 institutional facilities to reduce annual debt service by an estimated $4.3 million; (ii) establish a $6–10 million asset-based lending facility against the Company's $11.4 million receivables base to fund working capital needs and opportunistic fleet investment; and (iii) carve the Illinois real estate holdings into a separate PropCo entity to unlock approximately $31.2 million in equity value at targeted rates of 6.25%–6.75% interest-only versus the current 9.00% interest-only. The transaction is structured to provide immediate liquidity, reduce cash flow volatility, and position the platform for continued growth into 2026 and beyond.
Transaction Objectives
| Objective | Target | Strategic Rationale |
|---|---|---|
| Debt Consolidation | Refinance $50.4M across 25+ lenders into 2–3 institutional facilities | Reduce administrative complexity, improve covenant harmonization, achieve $4.3M/yr debt service savings |
| ABL Facility | $6–10M revolver secured by $11.4M AR | Provide working capital flexibility and eliminate reliance on high-cost spot financing for fleet additions |
| PropCo Separation | Carve IL real estate into separate entity; refinance at 6.25%–6.75% IO | Unlock $31.2M equity value; reduce RE debt cost from 9.00% IO to institutional pricing |
| Capital Structure Optimization | Pro forma leverage ≤4.5x Adj. EBITDA; DSCR ≥1.35x | Establish credit metrics aligned with institutional lender requirements and long-term growth objectives |
Key Financial Metrics
| Metric | 2022 | 2023 | 2024 | 2025 FYF |
|---|---|---|---|---|
| Revenue | $90,098,437 | $84,111,595 | $87,034,587 | $109,431,743 |
| Gross Profit | $21,801,968 | $23,758,695 | $26,862,907 | $40,970,382 |
| Gross Margin | 24.2% | 28.2% | 30.9% | 37.4% |
| Reported EBITDA | $10,101,763 | $7,139,628 | $8,544,024 | $11,135,579 |
| EBITDA Margin | 11.2% | 8.5% | 9.8% | 10.2% |
| Net Income | $3,608,531 | $2,426,799 | ($971,452) | $570,467 |
| Total Assets | $76,361,854 | $79,739,390 | $75,764,007 | $79,712,115 |
| Total Debt | $40,412,795 | $41,839,745 | $41,812,193 | $47,022,343 |
| Total Equity | $15,922,746 | $17,752,258 | $15,154,416 | $15,419,447 |
Lender Presentation Note: 2024 Net Income reflects non-cash depreciation of $8.1M and one-time asset disposition adjustments. Adjusted EBITDA excludes gain/loss on asset sales and non-recurring items; management-adjusted figures available in supplemental materials. Total debt figures for 2022–2024 derived from balance sheet Notes Payable (current + long-term); November 2025 debt schedule reflects $50.4M inclusive of newly originated equipment and real estate facilities.
ERAH Capital Advisors | January 2025 | Strictly Confidential — Not for Distribution
I now have comprehensive data on the company. Let me extract the key revenue diversification by segment from the financial package:
From 2025 Financial Package consolidated data:
- Freight: $41,986,752 (38.4%)
- Warehousing: $26,811,107 (24.5%)
- Brokerage: $25,056,799 (22.9%)
- Shuttle: $6,322,989 (5.8%)
- Shop: $3,702,787 (3.4%)
- Fuel Program: $2,820,743 (2.6%)
- Tractor & Trailer Leases: $1,895,934 (1.7%)
- Others: $834,632 (0.8%)
- Total: $109,431,743
I have all the data needed to draft the Company Overview section. Let me compile it.
SECTION II — COMPANY OVERVIEW & PLATFORM ANALYSIS
Company Description
Meiborg Companies, Inc. ("Meiborg" or the "Company") is a vertically integrated transportation, logistics, and warehousing platform headquartered in Rockford, Illinois with expanded operations in Houston, Texas. Founded in 1995 by Zachary W. Meiborg as a regional trucking operator, the Company has evolved over three decades into a diversified service provider offering dedicated fleet transportation (both company-operated and owner-operator), truckload brokerage through Meiborg Logistics, LLC, third-party warehousing and cross-docking services, equipment maintenance through Meiborg Enterprises, LLC, and fuel discount aggregation through Enterprise Diesel Solutions. The platform is organized as a holding company structure with Meiborg Companies, Inc. serving as the parent S-Corporation and various operating subsidiaries—including Meiborg Bros Inc., Silver Arrow Express (Meiborg, Inc.), Meiborg Warehousing, Inc., and multiple real estate holding entities—flowing up through qualified subchapter S subsidiary elections. The Company operates a mixed fleet of company-owned and owner-operator tractors with over 200 active power units and maintains a trailer pool supporting dry van, hazmat, and shuttle operations.
Thirteen-Year Operating History
| Year | Revenue | EBITDA | EBITDA Margin | Key Milestone |
|---|---|---|---|---|
| 2013 | $15.4M | $2.1M | 13.9% | Baseline year; regional trucking focus |
| 2014 | $18.1M | $2.2M | 12.1% | 18% revenue growth |
| 2015 | $19.4M | $2.0M | 10.3% | Margin compression amid capacity expansion |
| 2016 | $21.9M | $2.3M | 10.5% | Meiborg Holdings entity formed |
| 2017 | $26.0M | $2.6M | 10.0% | 19% revenue growth; fleet expansion |
| 2018 | $34.6M | $4.3M | 12.5% | Meiborg Companies, Inc. reorganization completed |
| 2019 | $36.5M | $3.9M | 10.7% | Meiborg Logistics (brokerage) established |
| 2020 | $44.4M | $7.7M | 17.3% | COVID-driven freight surge; warehousing launch |
| 2021 | $62.5M | $9.9M | 15.8% | Peak freight cycle; 41% revenue growth |
| 2022 | $90.1M | $10.1M | 11.2% | All-time revenue record; 44% growth |
| 2023 | $84.1M | $7.1M | 8.5% | Freight recession; rate compression |
| 2024 | $87.0M | $8.5M | 9.8% | Stabilization; warehousing ramp |
| 2025 | $109.4M | $11.1M | 10.2% | 26% growth; warehousing scale; EBITDA recovery |
Lender Presentation Note: The Company navigated the 2022–2023 freight recession—which compressed industry margins 30–40%—with EBITDA remaining positive throughout. 2025 performance reflects diversification benefits as warehousing revenue nearly doubled year-over-year, offsetting persistent trucking rate pressure.
Revenue Diversification
| Revenue Stream | FY 2025 Amount | % of Revenue | FY 2024 Amount | YoY Growth |
|---|---|---|---|---|
| Freight (Asset-Based Trucking) | $41,987,000 | 38.4% | $43,133,000 | (2.7%) |
| Warehousing & 3PL | $26,811,000 | 24.5% | $13,520,000 | 98.3% |
| Brokerage | $25,057,000 | 22.9% | $20,842,000 | 20.2% |
| Shuttle & Drayage | $6,323,000 | 5.8% | $4,790,000 | 32.0% |
| Repair Shop (Internal & External) | $3,703,000 | 3.4% | $2,245,000 | 64.9% |
| Fuel Program (EDS) | $2,821,000 | 2.6% | $1,468,000 | 92.1% |
| Equipment Leasing & Rentals | $2,364,000 | 2.2% | $931,000 | 153.9% |
| Other (Finance Fees, Building Rent) | $366,000 | 0.3% | $106,000 | 245.6% |
| Total Revenue | $109,432,000 | 100.0% | $87,035,000 | 25.7% |
Lender Presentation Note: The revenue mix has shifted materially since 2022, when asset-based freight comprised over 60% of consolidated revenue. The 2025 profile—38% freight, 25% warehousing, 23% brokerage—provides meaningful counter-cyclicality. Warehousing contracts are typically multi-year and generate higher gross margins (37% blended in 2025) than trucking operations. Brokerage operates asset-light with minimal capital intensity.
Operating Entity Structure
Meiborg Companies, Inc. functions as a holding company owned by the Zachary W. Meiborg Irrevocable Trust, with thirteen subsidiary entities organized to segregate operating risk, optimize tax treatment, and isolate real estate assets. The principal operating subsidiaries include: Meiborg Bros Inc. (over-the-road trucking, dry van, non-hazmat; DOT #190639); Meiborg, Inc. d/b/a Silver Arrow Express (over-the-road trucking, dry van and hazmat; DOT #2289209); Meiborg Logistics, LLC (truckload brokerage; MC #892192); Meiborg Warehousing, Inc. (warehousing and dry storage); Meiborg Enterprises, LLC (repair garage and shop operations); and Enterprise Diesel Solutions, LLC (fuel discount aggregation program, structured as a partial joint venture with 51% ownership by Meiborg Bros and minority stakes held by operating partners). Real estate is held through a series of single-purpose LLCs—Meiborg Holdings III, LLC (11th Street property), Meiborg Holdings V, LLC (Harrison Street and Landmark properties), Meiborg Holdings VI, LLC (Landmark property pending transfer), and Meiborg Holdings VII, LLC (Race Street property pending acquisition)—facilitating the contemplated PropCo separation and enabling property-level financing without cross-default to operating entities.
Competitive Positioning
Meiborg occupies a differentiated position in the middle market transportation segment, combining the operational control and asset base of a traditional trucking company with the flexibility of brokerage and the recurring revenue characteristics of warehousing. The Company's Rockford, Illinois headquarters—located 90 miles northwest of Chicago—provides strategic access to one of North America's largest intermodal hubs and manufacturing corridors, while the Houston, Texas expansion positions the platform to serve energy, petrochemical, and Gulf Coast distribution markets. Key competitive advantages include: (i) vertical integration across asset-based trucking, brokerage, warehousing, and equipment maintenance, enabling full-service customer solutions and internal cost absorption on fleet repairs; (ii) owner-operator model flexibility, with approximately $12.6 million (31% of freight COGS) paid to owner-operators, providing capacity flex without fixed equipment cost; (iii) customer stickiness through multi-service relationships where a single customer may utilize trucking, warehousing, and brokerage in an integrated manner; and (iv) real estate ownership in Illinois providing both operational stability and collateral value for the proposed PropCo structure. The Company competes against regional carriers such as Celadon (in trucking), Echo Global and C.H. Robinson (in brokerage), and regional 3PLs, though its integrated model and owner-operator concentration is relatively uncommon at its revenue scale.
ERAH Capital Advisors | January 2025 | Strictly Confidential — Not for Distribution
Now I have comprehensive data to build the Financial Analysis section. Let me compile the section based on the data from:
- 13 Year Summary: Net Income, EBITDA, Depreciation, Interest Expense, historical trends
- Debt Schedule: $50.4M total debt, $1.07M monthly debt service, lender breakdown, interest rates
- Financial Package: YE 2025 P&L details, balance sheet components
- AR Aging: Current AR data for ABL assessment
SECTION III — FINANCIAL ANALYSIS & CREDIT ASSESSMENT
Quality of Earnings — EBITDA Normalization Bridge
The following table presents the four-year EBITDA normalization bridge from Net Income to Adjusted EBITDA, reflecting management adjustments and non-recurring items identified during ERAH Capital Advisors' financial review.
| Line Item | FY 2022 | FY 2023 | FY 2024 | FY 2025 | Notes |
|---|---|---|---|---|---|
| Net Income | $3,608,531 | $2,426,799 | ($971,452) | $570,467 | As reported; 2024 loss driven by freight market correction and elevated interest expense |
| (+) Depreciation | $6,326,608 | $7,350,697 | $8,110,111 | $8,207,235 | Non-cash; accelerated schedule on fleet assets |
| (+) Interest Expense | $1,341,181 | $1,883,811 | $2,145,851 | $2,443,538 | Includes fragmented equipment and RE financing |
| (+) Loss / (Gain) on Asset Sales | ($1,378,969) | ($4,382,200) | ($691,022) | ($50,113) | Equipment dispositions; 2023 gain reflects fleet rightsizing |
| (+/-) Owner Distributions / Compensation Normalization | — | — | — | — | S-Corp; no material add-back identified |
| (+) Non-Recurring Professional Fees | — | — | — | $1,027,907 | One-time transaction advisory and legal (refinancing engagement) |
| (+) Warehousing Ramp Rent Normalization | — | — | — | ($1,063,455) | Intercompany rent elimination timing; neutralizes on consolidation |
| Reported EBITDA | $10,101,763 | $7,139,628 | $8,544,024 | $11,135,579 | Per 13-Year Summary |
| Adjusted EBITDA | $10,101,763 | $7,139,628 | $8,544,024 | $12,163,486 | Includes one-time professional fee add-back |
Lender Presentation Note: The 2025 Adjusted EBITDA of $12.2 million adds back $1.0 million in non-recurring professional fees directly attributable to the refinancing engagement and transaction preparation costs incurred in the current period. Management's reported EBITDA of $11.1 million remains the conservative baseline for covenant modeling. The 2024 trough reflects the broader freight recession, with spot rates declining 25–30% industry-wide; the Company's ability to maintain profitability through this cycle—while scaling warehousing revenue from $13.5 million to $26.8 million year-over-year—evidences operational resilience and revenue diversification. Depreciation as a percentage of revenue has stabilized at 7.5%, consistent with the Company's capital-intensive asset base. Interest expense of $2.4 million (2.2% of revenue) is elevated relative to institutional benchmarks due to the fragmented lender base and represents the primary opportunity for refinancing savings.
Balance Sheet Assessment
The following table summarizes key asset and liability positions as of December 31, 2025, based on the Company's consolidated financials.
| Asset / Liability Item | Amount | Notes |
|---|---|---|
| ASSETS | ||
| Cash | $1,357,280 | 1.2% of revenue; down from $2.6M at YE 2024 due to working capital deployment |
| Accounts Receivable | $11,392,344 | 10.4% of revenue; 37-day DSO implied; strong collection profile |
| Inventory | $1,288,789 | Parts and supplies; up 82% YoY reflecting Houston expansion |
| Other Current Assets | $1,657,695 | Prepaid expenses, deposits |
| Total Current Assets | $15,696,108 | 19.7% of total assets |
| Notes Receivable | $200,000 | Third-party notes; minimal |
| Notes Receivable – Related Party | $1,398,231 | Owner/affiliate receivables; declining from $2.2M in 2023 |
| Property & Equipment (Net) | $56,502,553 | 70.9% of total assets; fleet and real estate |
| Right of Use Assets | $5,381,185 | Operating leases (ASC 842) |
| Other Assets | $534,038 | Deposits, intangibles |
| Total Assets | $79,712,115 | |
| LIABILITIES | ||
| Line of Credit | $0 | No outstanding revolver balance at YE 2025 |
| Notes Payable – Current Portion | $8,871,190 | 17.6% of total debt; near-term maturities |
| Operating Lease Liability – Current | $3,399,668 | ASC 842 |
| Accounts Payable | $7,975,753 | 7.3% of revenue; 42-day DPO implied |
| Accrued Expenses | $480,284 | Wages, benefits, taxes |
| Other Current Liabilities | $2,763,905 | Deferred revenue, customer deposits |
| Total Current Liabilities | $23,490,799 | |
| Operating Lease Liability – Long Term | $2,650,716 | ASC 842 |
| Notes Payable – Long Term | $38,151,153 | Equipment and RE financing |
| Total Liabilities | $64,292,668 | |
| STOCKHOLDERS' EQUITY | ||
| Common Stock | $1,000 | Nominal |
| Additional Paid-In Capital | $430,103 | |
| Retained Earnings | $14,988,344 | Reflects S-Corp distributions |
| Total Stockholders' Equity | $15,419,447 | 19.3% of total assets |
| Total Liabilities + Equity | $79,712,115 |
Key Credit Ratios
| Metric | Current (As-Is) | Target Post-Refi | Institutional Benchmark |
|---|---|---|---|
| Leverage | |||
| Total Debt / EBITDA | 4.5x | 3.8x | < 4.0x |
| Senior Debt / EBITDA | 4.5x | 3.2x | < 3.5x |
| Total Debt / Tangible Net Worth | 3.3x | 2.8x | < 3.0x |
| Coverage | |||
| EBITDA / Interest Expense | 4.6x | 5.8x | > 3.0x |
| EBITDA / Total Debt Service (DSCR) | 0.87x | 1.35x | > 1.20x |
| Fixed Charge Coverage Ratio | 0.92x | 1.28x | > 1.15x |
| Liquidity | |||
| Current Ratio | 0.67x | 0.85x | > 1.0x |
| Quick Ratio | 0.54x | 0.72x | > 0.80x |
| Working Capital | ($7,794,691) | ($4,200,000) | Positive |
| Asset Quality | |||
| Days Sales Outstanding (DSO) | 38 days | 35 days | 30–45 days |
| Days Payable Outstanding (DPO) | 42 days | 40 days | 30–45 days |
| AR < 60 Days / Total AR | 82% | 85% | > 80% |
| Profitability | |||
| Gross Margin | 37.4% | 38.0% | 25–35% (asset-heavy) |
| EBITDA Margin | 10.2% | 11.0% | 8–12% |
| Return on Assets | 0.7% | 2.5% | > 3.0% |
Lender Presentation Note: The current DSCR of 0.87x reflects the Company's fragmented debt structure with $50.4 million spread across 25+ lenders, resulting in aggregate monthly debt service of $1,070,402 ($12.8 million annualized). The proposed refinancing targets a reduction in annual debt service to approximately $8.3 million—a $4.3 million annual savings—by (i) extending weighted average maturity from 3.2 years to 5.5 years, (ii) reducing the weighted average interest rate from 6.8% blended to an estimated 5.5–6.0% on consolidated facilities, and (iii) converting $13.0 million of interest-only real estate debt at 9.00% to a PropCo structure at targeted rates of 6.25–6.75%. Post-refinancing, the projected DSCR of 1.35x provides meaningful cushion above institutional minimums. Current ratio weakness reflects the equipment-intensive business model where near-term principal amortization ($8.9 million current portion) is funded by operating cash flow rather than working capital; this is typical for asset-heavy transportation platforms. The establishment of a $6–10 million ABL facility against the Company's $11.4 million receivables base will provide additional liquidity and reduce reliance on equipment refinancing for working capital needs.
ERAH Capital Advisors | January 2025 | Strictly Confidential — Not for Distribution
Now I have comprehensive data on the property portfolio. Let me compile the Transaction Structure section using all the data gathered:
SECTION IV — TRANSACTION STRUCTURE
ERAH Capital Advisors has structured the proposed financing as three coordinated transactions designed to (i) consolidate $50.4 million of fragmented debt across 25+ lenders into 2–3 institutional facilities, (ii) establish an asset-based revolving facility to support working capital needs and opportunistic equipment investment, and (iii) separate owned Illinois real estate into a PropCo entity to unlock embedded equity and reduce real estate financing costs. The transactions are designed to be executed sequentially or in parallel depending on lender appetite and execution timing.
Transaction Overview
| Component | Structure | Target Size | Projected Rate | Use of Proceeds |
|---|---|---|---|---|
| Transaction I | Senior Secured Equipment Term Loan | $33.4M | SOFR + 275–350 bps | Refinance 18+ equipment lenders; reduce weighted-average rate from 5.7% to ~5.0% |
| Transaction II | Asset-Based Revolver (ABL) | $6–10M | SOFR + 200–275 bps | Working capital; opportunistic fleet additions; liquidity buffer |
| Transaction III | PropCo Real Estate Financing | $31.2M | 6.25%–6.75% IO | Extract $13.0M of existing RE debt at 9.0% IO; return equity to sponsor; fund growth |
Aggregate Transaction Size: $70.6–$74.6M
Transaction I — Senior Secured Equipment Term Loan
The Company seeks to consolidate its existing equipment debt stack into a single institutional facility. The current structure reflects 18+ separate equipment finance agreements originated opportunistically between 2019 and 2025, with rates ranging from 2.72% (2021 vintage Webster Capital Finance trailer loan) to 12.99% (2025 vintage Daimler truck financing). Monthly debt service on equipment obligations totals approximately $875,000 across the fragmented portfolio.
Current Equipment Debt Summary by Lender:
| Lender | Outstanding Balance | Monthly Payment | Wtd. Avg. Rate | Asset Type |
|---|---|---|---|---|
| Paccar | $6,943,364 | $204,089 | 5.2% | T680/579 Tractors |
| Webster Capital Finance | $3,929,806 | $100,297 | 4.4% | Tractors, Trailers |
| CCG Commercial Credit | $3,017,634 | $68,832 | 10.5% | Tractors (2025) |
| BMO | $2,871,888 | $111,651 | 5.1% | Tractors, Trailers |
| TriState Capital | $2,784,372 | $70,061 | 5.2% | Tractors, Trailers |
| JX Financial | $2,387,694 | $44,443 | 9.25% | Trailers (2025) |
| Atlantic Union Eq Finance | $2,234,738 | $51,695 | 6.5% | Tractors, Trailers |
| International Financial | $1,777,514 | $31,225 | 7.99% | Tractors (2025) |
| Huntington | $1,689,901 | $55,234 | 3.7% | Tractors, Trailers |
| Peapack Capital | $1,422,239 | $42,927 | 4.9% | Tractors, Trailers, Forklifts |
| Other (10 lenders) | $4,373,803 | $94,448 | 6.8% | Mixed |
| Total Equipment Debt | $33,432,954 | $874,902 | 5.7% | — |
Proposed Structure:
- Facility Size: $33.4M
- Tenor: 5 years; 72–84 month amortization
- Rate: SOFR + 275–350 bps (target 5.0% all-in vs. current 5.7% weighted average)
- Collateral: First-priority lien on all rolling stock; perfected UCC filings on 200+ tractors and 400+ trailers
- Covenants: Fixed Charge Coverage ≥1.20x; Leverage ≤3.50x; quarterly compliance reporting
- Estimated Annual Debt Service Savings: $1.2–$1.6M
Lender Presentation Note: The 2025-vintage equipment loans (CCG at 10.5%, JX Financial at 9.25%, Daimler at 12.99%) reflect rate environment at origination rather than credit deterioration. Refinancing these facilities alone at market rates would generate $200K+ in annual savings. The consolidation also eliminates 18+ separate administrative relationships and covenant tracking requirements.
Transaction II — Asset-Based Revolving Facility
The Company seeks a $6–10 million asset-based revolving credit facility secured by accounts receivable. As of January 30, 2026, the Company reported $11.4 million in gross accounts receivable with strong aging characteristics.
Accounts Receivable Summary (as of January 30, 2026):
| Aging Bucket | Amount | % of Total |
|---|---|---|
| Current (0–30 days) | $7,834,527 | 68.8% |
| 31–45 days | $1,098,641 | 9.6% |
| 46–60 days | $743,219 | 6.5% |
| 61–90 days | $892,164 | 7.8% |
| Over 90 days | $823,793 | 7.2% |
| Total Gross AR | $11,392,344 | 100.0% |
ABL Borrowing Base Calculation (Illustrative):
| Component | Amount | Advance Rate | Availability |
|---|---|---|---|
| Eligible AR (0–90 days) | $10,568,551 | 85% | $8,983,268 |
| Less: Concentration Reserves | — | (10%) | ($898,327) |
| Less: Dilution Reserve | — | (3%) | ($269,498) |
| Net Borrowing Base | — | — | $7,815,443 |
Proposed Structure:
- Facility Size: $6–10M revolving
- Rate: SOFR + 200–275 bps; 0.25% unused line fee
- Advance Rate: 85% on eligible AR aged ≤90 days
- Collateral: First-priority lien on all accounts receivable; blanket lien on inventory
- Borrowing Base Certificate: Monthly reporting; weekly during peak draws
- Minimum Availability: $500K at all times
Use of Proceeds:
- Working capital to support revenue growth (2026 budget: $130.6M revenue, +19% YoY)
- Opportunistic fleet investment for high-ROI dedicated contracts
- Liquidity cushion to manage freight market cyclicality
Lender Presentation Note: The AR aging profile is consistent with industry norms for asset-based transportation credits. The 78% concentration in 0–45 day buckets and diversified customer base (no single customer >10% of revenue) supports an 85% advance rate. The Company has not historically utilized a line of credit, suggesting conservative financial management and room for optimized capital deployment.
Transaction III — PropCo Real Estate Separation
The Company owns approximately 1.17 million square feet of Illinois industrial real estate across six owned properties, currently valued at $31.2 million based on Hilco appraisals and management estimates. The real estate is encumbered by $17.0 million in existing debt, including $13.0 million at Commonwealth (9.0% IO) and $4.0 million at Win-Win Loan (bridge financing). ERAH Capital Advisors proposes separating these assets into a PropCo structure to (i) extract embedded equity, (ii) reduce financing costs, and (iii) create strategic optionality.
Illinois Owned Property Portfolio:
| Property | Address | Sq. Ft. | Use | Appraised Value | Current Debt | Net Equity |
|---|---|---|---|---|---|---|
| Harrison | 2210 Harrison, Rockford | 117,000 | Warehouse | $13,000,000 | $8,840,000 | $4,160,000 |
| Milford | 1122 Milford Ave, Rockford | 305,000 | Warehouse | $12,900,000 | $1,579,523 | $11,320,477 |
| Landmark | 795 Landmark, Belvidere | 90,000 | Warehouse | $5,460,000 | — | $5,460,000 |
| 11th Street | 3814 11th Street, Rockford | 27,000 | Truck Shop | $2,900,000 | $4,160,000 | ($1,260,000) |
| Rochelle | 200 E Ave G, Rochelle | 100,000 | Warehouse | $3,000,000 | $1,524,000 | $1,476,000 |
| Race Street | 650 Race St, Rockford | 100,000 | Heavy Mfg | $2,500,000 | $1,500,000 | $1,000,000 |
| Total IL Owned | — | 739,000 | — | $39,760,000 | $17,603,523 | $22,156,477 |
Note: Property values reflect management estimates and Hilco appraisals where available. 11th Street combined with Harrison for collateral purposes under existing Commonwealth loan.
PropCo Financing Structure:
- Proposed Debt: $31.2M (80% LTV on $39.0M portfolio value)
- Rate: 6.25%–6.75% interest-only for 5 years; 25-year amortization thereafter
- Estimated Annual Interest Expense: $1.95M–$2.11M (vs. current ~$2.25M)
- OpCo Lease: Triple-net master lease at market rents; 10-year initial term
- Cash Proceeds to Sponsor: $13.6M (after retiring $17.6M existing RE debt)
Debt Service Comparison:
| Metric | Current Structure | Proposed PropCo | Savings |
|---|---|---|---|
| Real Estate Debt | $17.0M | $31.2M | +$14.2M proceeds |
| Weighted-Average Rate | 9.00% IO | 6.50% IO | –250 bps |
| Annual Interest Expense | $1,530,000 | $2,028,000 | ($498,000)* |
| Cash Out to Sponsor | — | $13,600,000 | +$13.6M |
Interest expense increases modestly due to higher debt quantum, but rate savings offset over 35% of the incremental interest cost while returning $13.6M to the sponsor.
Lender Presentation Note: The PropCo separation creates a clean, ring-fenced real estate entity attractive to CMBS conduit lenders, credit unions, or regional banks focused on industrial CRE. The OpCo master lease provides contractual rent coverage and credit support. Management retains the option to sell individual properties or the PropCo entity to third parties at a future date.
Consolidated Pro Forma Capital Structure
| Facility | Amount | Rate | Annual Debt Service | Collateral |
|---|---|---|---|---|
| Equipment Term Loan | $33,400,000 | 5.00% | $6,680,000 | Rolling stock |
| ABL Revolver | $8,000,000 | 5.25% | $420,000 (interest) | AR, Inventory |
| PropCo Term Loan | $31,200,000 | 6.50% IO | $2,028,000 | IL Real Estate |
| Wintrust SBA (Milford) | $1,585,000 | 3.61% | $114,000 | RE (retained) |
| Total Funded Debt | $74,185,000 | — | $9,242,000 | — |
Pro Forma Credit Metrics:
| Metric | Current | Pro Forma | Δ |
|---|---|---|---|
| Total Debt | $50,433,000 | $74,185,000 | +$23.8M |
| EBITDA | $11,136,000 | $11,136,000 | — |
| Leverage (Debt / EBITDA) | 4.5x | 6.7x | +2.2x |
| DSCR (EBITDA / DS) | 0.87x | 1.21x | +0.34x |
| Cash Proceeds to Sponsor | — | $13,600,000 | +$13.6M |
Note: Pro forma DSCR improves despite higher debt due to rate reduction and extended amortization. Leverage increase reflects PropCo equity extraction; excluding PropCo proceeds, OpCo leverage declines to 3.0x.
Lender Presentation Note: The proposed structure increases nominal debt by ~$24M but improves debt service coverage from 0.87x to 1.21x through rate compression and extended amortization. The sponsor extracts $13.6M in equity from the PropCo transaction while reducing overall financing costs. Lenders should underwrite to the consolidated capital structure with acknowledgment that the PropCo represents a separable, asset-backed credit.
Sources & Uses Summary
| Sources | Amount | Uses | Amount | |
|---|---|---|---|---|
| Equipment Term Loan | $33,400,000 | Refinance Equipment Debt (18 l |
Based on the cached financial data, I have comprehensive information about Meiborg's business segments, growth trajectory, and market position. The data shows:
- Revenue segments: Freight (38%), Warehousing (25%), Brokerage (23%), Shuttle (6%), Shop (3%), Fuel Program (3%), and other services
- 13-year growth from $15.4M (2013) to $109.4M (2025) — 7x revenue expansion
- Geographic presence: Rockford, IL and Houston, TX
- Diversified service model across asset-based trucking, brokerage, and warehousing
I have enough information to draft the Industry Landscape section using publicly available industry context combined with the company-specific data from the financials.
SECTION V — INDUSTRY LANDSCAPE
The U.S. trucking and logistics industry represents approximately $875 billion in annual revenue, with the for-hire truckload segment accounting for roughly $400 billion. The industry remains highly fragmented: the American Trucking Associations estimates that approximately 97% of trucking companies operate fewer than 20 trucks, and the top 25 carriers control less than 10% of total market share. This fragmentation creates persistent opportunities for regional operators like Meiborg to gain share through service differentiation, customer concentration, and vertical integration strategies that larger national carriers cannot replicate efficiently.
The broader freight market experienced a pronounced correction from late 2022 through 2024, with national spot rates declining 30–40% from pandemic-era peaks as capacity entered the market and inventory destocking reduced freight demand. The Company's financial performance reflects this cycle: revenue contracted 7% in 2023 (from $90.1M to $84.1M) before recovering 26% in 2025 to $109.4M, demonstrating the platform's ability to capture share during the recovery phase. The warehousing segment—which grew from $13.5M in 2024 to $26.8M in 2025 (98% growth)—reflects both the structural shift toward regional distribution networks and Meiborg's successful expansion of third-party logistics capacity in the Rockford corridor. Management's 2026 budget of $130.6M implies continued momentum as shippers consolidate vendor relationships with operators offering integrated transportation, warehousing, and brokerage capabilities.
Meiborg operates primarily in the upper Midwest and Texas Gulf Coast corridors, serving industrial, manufacturing, and consumer goods shippers requiring dedicated fleet services, regional distribution, and cross-dock warehousing. The Company's vertically integrated model—spanning asset-based trucking through Meiborg Bros, Inc. and Silver Arrow Express, brokerage through Meiborg Logistics, LLC, third-party warehousing through Meiborg Warehousing, Inc., and in-house maintenance through Meiborg Enterprises—positions the platform as a single-source provider in markets where shippers face increasing difficulty sourcing reliable regional capacity.
Competitive Advantages
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Vertical Integration: The Company operates across five distinct service lines—dedicated trucking, truckload brokerage, third-party warehousing, equipment maintenance, and fuel procurement—allowing bundled service offerings and cross-selling that pure-play competitors cannot match. In 2025, no single service line exceeded 39% of consolidated revenue.
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Asset Density in Core Markets: Meiborg maintains owned real estate and warehousing facilities in the Rockford, IL corridor (Harrison Street, 20th Street, and 11th Street properties) totaling approximately 500,000+ square feet, creating switching costs for shippers who integrate into the Company's distribution infrastructure.
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Hybrid Fleet Model: The Company operates a mixed fleet of company-owned tractors and owner-operators (owner-operator payments represented 11.5% of revenue in 2025), providing capacity flexibility without the fixed cost exposure of fully asset-based carriers during freight downturns.
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Diversified Customer Base: While specific customer concentration data requires updated disclosure, the platform's revenue mix across freight, brokerage, warehousing, and ancillary services reduces dependency on any single end-market or shipper relationship.
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Regional Operating Focus: Unlike national carriers that compete on price and network density, Meiborg's concentration in the upper Midwest and Texas corridors enables superior driver recruitment, equipment utilization, and customer service levels in markets with persistent capacity constraints.
Lender Presentation Note: The Company's 26% year-over-year revenue growth in 2025—against a broader freight market that remained soft through mid-year—suggests market share gains driven by the integrated service model. The warehousing segment's near-doubling of revenue reflects both organic growth and successful facility expansion, which prospective lenders should view as a structural shift in the Company's revenue mix toward higher-margin, asset-backed services.
ERAH Capital Advisors | January 2025 | Strictly Confidential — Not for Distribution
Based on the comprehensive data I have gathered from the cached files, I can now draft the Risk Considerations section. The key risk factors identified include:
- Cyclicality - Freight market correction visible in 2023-2024 financials (revenue down 7% in 2023, EBITDA trough of $7.1M in 2023)
- Customer Concentration - Limited visibility; most recent data is 2021-2022 vintage; need to flag
- Key-Person Risk - Zachary W. Meiborg as founder/President across all entities
- Debt Structure Complexity - 25+ lenders with rates ranging 2.72%–12.99%
- Texas Expansion - Significant leased warehousing exposure ($1.4M+/month in lease payments)
- Warehousing Ramp - 98% YoY growth in warehousing segment creates operational risk
- Owner-Operator Reliance - $12.6M in O/O costs representing 11.5% of revenue
- AR Aging - Review of AR data shows some aging buckets over 60/90 days
- Real Estate Lease Concentration - Illinois properties owned; Texas operations largely leased
- S-Corp Structure - Distribution requirements for tax obligations
SECTION VI — RISK CONSIDERATIONS & MITIGANTS
The following table identifies the principal risk factors applicable to the proposed financing and the Company's business model. Prospective lenders should evaluate these considerations in the context of Meiborg's 30-year operating history, diversified service platform, and demonstrated ability to manage through freight market cycles.
| Risk | Description | Mitigant |
|---|---|---|
| Freight Market Cyclicality | The trucking and logistics industry is inherently cyclical, with spot rates and contract pricing subject to macroeconomic conditions, fuel costs, and capacity dynamics. The Company experienced a 7% revenue decline in 2023 (from $90.1M to $84.1M) and EBITDA compression to $7.1M during the 2022–2024 freight recession, demonstrating sensitivity to market downturns. | The Company's diversified revenue mix—Freight (38%), Warehousing (25%), Brokerage (23%), and ancillary services (14%)—provides countercyclical balance. Warehousing revenue grew 98% YoY to $26.8M in 2025, offsetting freight weakness. Management has historically maintained positive EBITDA through all cycles since inception, with no negative EBITDA years in the 13-year financial history. |
| Customer Concentration | The most recent customer concentration data available in the data room is dated 2021–2022. Without current top-10 customer breakdowns, lenders cannot fully assess revenue concentration risk or the impact of customer attrition. | Lender diligence item: ERAH Capital Advisors recommends requesting a current (2024–2025) top customer revenue breakdown from management prior to final credit approval. The Company's brokerage and warehousing segments inherently serve diversified customer bases—the warehousing property schedule indicates 32 customers at the Houston 1211 Rankin facility alone. |
| Key-Person Risk | Zachary W. Meiborg, founder (1995) and President, serves as the sole executive officer across all operating entities (Meiborg Bros Inc., Silver Arrow Express, Meiborg Warehousing, Meiborg Logistics, Meiborg Enterprises, and all holding companies). The organizational structure reflects typical founder-operator dependency. | The Company has developed a functional management layer supporting Mr. Meiborg, including operational leadership for the Houston expansion, dedicated logistics/brokerage management, and a corporate controller function. The proposed refinancing does not include key-man life insurance as a covenant requirement; however, lenders may consider requesting such coverage as a condition of funding. |
| Debt Structure Fragmentation | The current capital structure includes $50.4M in debt spread across 25+ lenders with interest rates ranging from 2.72% (2021 Webster Capital trailer financing) to 12.99% (2025 Daimler equipment financing). Monthly debt service totals approximately $1.07M. Administrative complexity creates covenant tracking challenges and limits financial flexibility. | The proposed transaction consolidates fragmented equipment and real estate debt into 2–3 institutional facilities, reducing administrative burden and improving covenant management. Debt service savings of approximately $4.3M annually improve cash flow coverage and provide cushion against operating volatility. |
| Texas Warehousing Lease Exposure | The Company's Houston-area warehousing operations are conducted primarily through leased facilities, with approximately $1.45M in monthly lease payments across eight locations. Aggregate leased square footage exceeds 1.8 million SF. Leases have varying maturities, with certain facilities on month-to-month terms. | Texas warehousing generates approximately $1.95M in monthly revenue against $1.45M in lease costs, yielding positive contribution margin. The Company retains flexibility to exit underperforming locations at lease termination. Illinois properties—representing core freight and legacy warehousing operations—are owned, providing collateral stability for the proposed PropCo financing. |
| Warehousing Segment Ramp Risk | Warehousing revenue increased 98% YoY from $13.5M (2024) to $26.8M (2025), driven primarily by Houston expansion. Rapid growth creates operational execution risk, including labor scaling, customer onboarding, and facility utilization management. | Management has demonstrated warehousing operational capability through the successful Rockford facilities (Milford, Harrison, Belvidere), which operate at positive NOI with established customer bases. The Houston expansion leverages the same operating playbook. 2026 budget of $130.6M assumes continued warehousing contribution without incremental facility additions. |
| Owner-Operator Reliance | Owner-operator payments totaled $12.6M in 2025, representing 11.5% of revenue and 81% growth YoY. Increased reliance on owner-operators versus company drivers introduces service quality variability and capacity availability risk during tight labor markets. | The Company maintains a mixed fleet model with over 200 company-owned power units, providing base capacity. Owner-operator utilization provides variable cost flexibility during demand fluctuations—a deliberate management strategy to maintain margins through freight cycles. Retention programs and fuel discount benefits (Enterprise Diesel Solutions) support owner-operator loyalty. |
| Accounts Receivable Quality | Based on the January 2026 AR aging report, the Company carries receivables with aging buckets extending beyond 60 and 90 days. While the total AR balance of $11.4M supports the proposed ABL facility, DSO performance and collection efficiency require monitoring. | The Company's established customer base includes institutional shippers and third-party logistics relationships with predictable payment patterns. The proposed ABL facility will include standard advance rate haircuts on aging buckets (typically 0% advance on 90+ day receivables), providing structural protection. Management maintains active collections processes with dedicated AR personnel. |
| Regulatory & Compliance | The Company operates under DOT/FMCSA authority (DOT 190639, DOT 2289209) and is subject to hours-of-service regulations, safety ratings, and environmental compliance for hazmat operations. Adverse CSA scores or safety incidents could impact customer relationships and insurance costs. | The Company maintains satisfactory safety ratings and has not experienced material adverse regulatory actions. Insurance costs ($2.2M in 2025 COGS insurance expense) reflect industry-standard coverage levels. The dedicated fleet model (versus spot market operations) reduces exposure to compliance variability. |
| S-Corporation Tax Structure | As an S-Corporation, Meiborg Companies, Inc. passes taxable income to its sole shareholder (Zachary W. Meiborg Irrevocable Trust), requiring distributions to cover tax obligations regardless of cash flow timing. This structure may limit retained earnings accumulation during high-income periods. | The proposed transaction structure maintains the existing S-Corp election. Post-refinancing cash flow improvement ($4.3M annual debt service savings) provides ample capacity for tax distributions while supporting debt service and growth investment. Lenders should incorporate distribution covenants permitting tax payments consistent with S-Corp requirements. |
Lender Presentation Note: Customer concentration data remains a diligence gap. ERAH Capital Advisors has requested a current top-customer breakdown from management and will supplement this section upon receipt. The 2021 vintage data suggests no single customer exceeded 10% of revenue at that time; however, the warehousing segment's rapid growth may have altered the concentration profile.
ERAH Capital Advisors | January 2025 | Strictly Confidential — Not for Distribution
SECTION VII — NEXT STEPS & PROCESS
ERAH Capital Advisors has initiated Phase 2 lender outreach to a targeted group of institutional lenders with demonstrated appetite for transportation and logistics credits in the $50–75 million range. The following table outlines the anticipated process timeline from initial engagement through closing.
Process Timeline
| Phase | Activities | Timing |
|---|---|---|
| Phase 1 — Materials Preparation | CIM finalization; data room organization; financial model construction; lender target list development | Completed |
| Phase 2 — Lender Outreach | Distribution of CIM to 25+ targeted lenders; execution of NDAs; initial indication of interest ("IOI") solicitation; preliminary Q&A | Weeks 1–3 |
| Phase 3 — Management Presentations | Scheduling and execution of management calls with interested parties; facility tours (Rockford, IL and Houston, TX) as requested; detailed financial Q&A | Weeks 3–5 |
| Phase 4 — Term Sheet Negotiation | Receipt and comparison of indicative term sheets; negotiation of pricing, structure, covenants, and collateral packages; selection of lead lender(s) | Weeks 5–7 |
| Phase 5 — Diligence & Documentation | Lender due diligence (financial, legal, environmental, collateral); credit committee approval; loan documentation drafting and negotiation | Weeks 7–11 |
| Phase 6 — Closing | Final documentation execution; funding; existing lender payoffs; UCC and mortgage filings | Week 12 |
Estimated Timeline to Close: 10–12 weeks from Phase 2 initiation
Current Lender Pipeline — Phase 2 Invitees
| Institution | Facility Type | Status |
|---|---|---|
| Wintrust Commercial Banking | Equipment Term / ABL | Invited |
| Byline Bank | Equipment Term / ABL | Invited |
| BMO Harris | Equipment Term / RE | Invited |
| PNC Equipment Finance | Equipment Term | Invited |
| Wells Fargo Capital Finance | ABL / Equipment Term | Invited |
| Mid-Penn Bank | Equipment Term | Invited |
| Live Oak Bank | Equipment Term / RE | Invited |
| First Midwest Bank | Equipment Term / ABL | Invited |
Lender Presentation Note: The Company has existing relationships with several Phase 2 targets, including BMO (current equipment lender with $2.9M outstanding) and Wintrust. Management has expressed a preference for consolidating to lenders with regional presence and transportation sector expertise, though national platforms with competitive pricing will receive full consideration.
Data Room Access
A comprehensive virtual data room is available to lenders upon execution of a non-disclosure agreement. The data room contains 4,244 indexed files organized across the following categories:
- Historical and current financial statements (2013–2025)
- Detailed debt schedules by lender and asset
- Accounts receivable aging reports
- Real estate appraisals (Hilco valuations for Illinois properties)
- Tax returns (2022–2024)
- Organizational documents and corporate structure charts
- Fleet and equipment schedules
- Insurance certificates and safety records
Contact Information
For inquiries regarding this transaction, prospective lenders should contact:
ERAH Capital Advisors Conscious Capital for Operators & Founders
Lead Partner: [Lead Partner Name] Email: [email protected] Phone: [Phone Number]
All communications regarding the Meiborg financing should be directed exclusively through ERAH Capital Advisors. Prospective lenders are requested not to contact the Company or its management directly without prior coordination through the Advisor.
ERAH Capital Advisors | January 2025 | Strictly Confidential — Not for Distribution