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$9 Million Cash Flow Justified Term Loan Ends Litigation

The London Manhattan Company is pleased to announce it recently provided a $9 Million Cash Flow Term Loan Financing for one of our clients in the food service industry. The client had no fixed assets.

The Situation:

The working relationship between our client and its former lender had deteriorated, leading to litigation. Settlement discussions had ground to a halt. The parties asked LMC to broker a settlement deal between them, and then arrange the financing to implement it.

LMC negotiated the financial terms of the settlement between the parties, and arranged new cash flow financing to fund it. The new loan provided proceeds to: (a) refinance the borrower’s existing debt, (b) fund the repurchase of the stock and warrants held by its prior lender, and (c) provide additional working capital to the company.

The Financing:
 

This Cash Flow Justified Term Loan financing had the following attributes:

Amount Financed: $9 Million
Structure for Financing: Variable Rate Term Loan
Index: 30 Day LIBOR Plus Margin
Amortization: Stipulated Monthly Payments With Balloon At Maturity
Loan Term: Seventy Two Months
Collateral: Cash Flow Plus Blanket Lien On All Intangibles And Personal Property Subject Only to Liens Permitted By New Lender
Use of Proceeds: Retire Existing Debt, Repurchase Common Stock, Preferred Stock and Warrants From Prior Lender, and Working Capital
Other Closing Conditions: Execution of Settlement Agreement Between the Borrower and the Prior Lender

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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