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$8 Million Combination A/R, Inventory, Equipment
and CAPEX Facility For Manufacturer With No Coverage

The London Manhattan Company is pleased to announce it recently arranged a combination of revolving and term debt (including a CAPEX line of credit) for a manufacturer with headquarters in the Western US secured by a lien on all of the borrower’s assets. The borrower could not provide debt service coverage due to operating difficulties, and was required to put a stipulated amount of equity or subdebt into the company at the closing by the new senior lender.

The Situation:

This manufacturing borrower had total annual revenues running just under $20 Million. The company faced strong competitive pressures in its industry.

The Combined Financing:

LMC arranged a package of new financing with the following attributes:

Revolving Line of Credit: $8 Million
A/R Advance Rate: 85%
Inventory Advance Rate: 60%
Excess Availability Requirement At Closing: At Least $1 Million
Term Loan (Revolver Sublimit): Lesser of $800,000 or 80% of Auction Value of Borrower’s Equipment Amortized Over Sixty Months
CAPEX Line (Revolver Sublimit): $750,000 Subject to Conditions
Loan Term: Three Years
Collateral:  First Position Lien On All Corporate Assets
Prepayment Penalty: Yes; 3% of Loan Amount in Year 1, 2% in Year 2, 1% in Year 3
Subdebt or Equity Requirement: Mandatory Capital Infusion Required At Closing

Many Other Special Programs Available

We have many niche lending programs available, including those suitable for companies with less than perfect credit.　 If you have had difficulty getting the financing you need, please give us a call.

For more information, or if you have an opportunity you would like to discuss, please contact Ron Giguere at 888.859.6025
 

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