As real estate and construction began to rebound in 2012-2014, the Company began to see more opportunities to gain new work. Many of the opportunities involved work for municipalities or other governmental entities on larger projects that required surety bonding.
So after surviving the recession, the question became: How could the Company expand its surety credit line and participate in more bonded projects while preserving the solid working relationship with its current surety and underwriter?
Lykes surety professionals met with the Company’s surety bond company and discussed with the underwriter the opportunities available to restructure the company’s balance sheet in a way that would provide the surety with justification for an expanded line.
Working with the Company and its outside accountants and surety, Lykes designed a model financial structure that, if implemented, would give the surety the rationale to support expanding the surety credit line.
Dallas 1 has already made great use of its newly expanded relationship with its current surety. The input from Lykes and the surety helped provide the Company with the direction it needed to work with its shareholders and banks to restructure its balance sheet to support greater surety credit. That greater capacity has resulted in the pursuit of several jobs that would otherwise have been too large for the Company to even bid.