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$11.25 Million Refinance Fixes Inefficient Capital Structure

The London Manhattan Company is pleased to announce it recently provided $11.25 million in new working capital for a large materials processor located in the western US. This refinancing of all the client’s asset classes (real estate, equipment and a/r and inventory) replaced an extremely inefficient capital structure produced by a long series of “one off” loans. LMC’s package of new real estate loans, a/r based revolving debt and equipment financing provided greatly increased working capital for this successful company at reduced debt service levels.

The Situation:

This borrower had a long history of successful operations with annual revenues running in excess of $20 million. The company operated on three separate parcels of real estate, which were not properly leveraged for working capital purposes. In addition, the parcels had little in the way of permanent improvements, given the nature of the business.

The company had existing revolving debt of only $2.3 million secured by accounts receivable and inventory. In addition, the borrower had an inefficient array of 18 separate equipment and other unsecured loans. The new real estate, revolving and equipment term debt financing originated by LMC paid these off, and provided generous availability for future expansion of this profitable firm.

The Real Estate Financing:

LMC arranged new Real Estate Financing with the following attributes:

Loan Amount: $3.75 Million
Property Financed: 3 Separate Parcels
Loan Term: 25 Years
Loan To Value: 75%
Payments: LIBOR Based Monthly Principal and Interest Payments
Personal Guarantees: Yes

LMC arranged new Revolving and Equipment Term Debt with the following attributes:

Amount: $7.5 Million
Loan Term: 3 Years
Equipment Portion Amortization: 5 Years
Secured By: Accounts Receivable, Inventory and Equipment
Personal Guarantees: Limited PG of $3.5 Million
Other Features: Small Letter of Credit and CAPEX Facilities Included

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