Propel Fuels, Inc.
“THE CONTINUING SUPPORT OF OUR EXISTING INVESTORS, THE NEW INVESTMENT FROM GENTRY, AND THE ACCESS TO ADDITIONAL DEBT CAPITAL FROM CAPX IS A STRONG ENDORSEMENT FOR OUR VISION, OUR ACCOMPLISHMENTS, AND TEAM. THIS NEW FUNDING, COMBINED WITH GRANT FUNDING FROM THE STATE OF CALIFORNIA, WILL ENABLE US TO ACCELERATE THE BUILD OUT OF OUR ALTERNATIVE FUEL STATIONS ACROSS STATE, OFFERING CONSUMERS TRUE CHOICE AND A BETTER EXPERIENCE AT THE PUMP.”
Matt Horton, CEO
Propel operates a growing network of stations that provide renewable fuels (Flex Fuel E85, biodiesel blends) alongside the conventional gasoline that most drivers use today. Propel currently operates stations throughout California and Washington State with more than 200 stations planned for new and existing markets over the next two years. In order to execute the growth plan, Propel Fuels and its equity sponsors worked closely with CapX to find a debt solution that would facilitate the rollout of new locations.
Offering a better station experience that reaches beyond fuel, Propel enables drivers to offset carbon from their fuel purchases, improve their vehicle’s fuel economy, find rideshare opportunities, tune bicycles, and recycle on the go. Propel is the only fueling company in the country to bring drivers the opportunity to offset their emissions at the pump through the company’s unique CarbonOffset program. The company offers consumers and fleets new fuel choices that make progress towards reducing carbon emissions, creating jobs, and lowering America’s dependence on foreign oil.
THE CAPX SOLUTION
CapX took the time to understand the total capital required to meet the needs of Propel’s aggressive growth plan. With the additional equity contributed by the sponsors combined with the grants provided by the State of California, CapX designed a debt solution that satisfied the total capital requirements of the company. CapX provided a $10.0 million senior secured term loan to help Propel acquire and build out new locations to support their growth plan. With the new funding, Propel will be able to accelerate the build out of its network of stations that offer drivers the cleanest, most sustainable, domestically produced fuels on the market today.