Alaska lenders finding good borrowers: lending opportunities present growth for Alaska businesses.

• Author: Barbour, Tracy
• Position: FINANCIAL SERVICES - Company overview

On October 31, Bristol Bay Native t Corporation (BBNC) completed the largest, most technical transaction in its history. It acquired Peak Oilfield Service Co., thanks to commercial financing from Wells Fargo. The term loan supported a strategic acquisition for BBNC, which is owned by 9,400 Alaska Native shareholders in Southwest Alaska.

BBNC has engaged in business in the oilfield service industry for a number of years and is a staunch advocate of responsible resource development. Peak--which provides field support services on the North Slope, Cook Inlet, and in North Dakota--has a strong safety culture that produces a loyal workforce and happy customers, according to BBNC President and CEO Jason Metrokin.

"Peak Oilfield is a success story in Alaska, and we're proud to have them as a part of the BBNC family," he says. "Peak will significantly contribute to BBNC's mission, Enriching Our Native Way of Life."

Metrokin praises Wells Fargo for making the transaction a success. "The collective team at Wells Fargo was highly engaged and very professional during our acquisition process," Metrokin says. "The breadth of resources Wells Fargo brought to the table were uniquely qualified to meet our needs."

Alaska's financial institutions offer the gamut of commercial loans, including real estate, working capital, equipment, and business acquisition and expansion financing. They also make bank portfolio loans, extend lines of credit, and work with other entities that facilitate financing, such as the Small Business Administration, Alaska Industrial Development and Export Authority, Bureau of Indian Affairs, US Department of Agricukure, and Alaska Housing Finance Corporation.

Commercial loans not only help businesses thrive and expand, but they also have a broader impact on the state's economy, according to Stacy Tomuro, a vice president with First National Bank Alaska's Commercial Lending Division. For example, lending money to businesses that aren't holding enough cash to buy goods and services from other Alaska businesses injects immediate cash into the economy. Financing equipment and real estate gives buyers more purchasing power if they only need to make a 20 to 25 percent down payment. Sellers, in turn, can reinvest the cash in Alaska's economy.

Eager to Make Good Loans

In general, the environment for commercial loans is very competitive now, and banks--coming out of the recent recession-are eager to grow loans again, according to Wells Fargo...