California Printer Inks Substantial Deal
Incorporated in the late ’60s, this Company is a California-based full-service printing company. It’s owned and run by the founder.
Due to the pandemic, the Company experienced a drop in revenue and violated its loan covenants. The bank needed to move the Company off its books, so the banker referred the owner to Celtic Capital.
One of the issues we faced related to the Company’s equipment. There were several leases with both the leasing arm of its bank and with other leasing companies. We sifted through twenty-five open UCC files and working with the appraiser, determined on which equipment, and how much, we could lend.
Other issues needed addressing as well. The Company had past due taxes and was delinquent on its power bill.
There were a lot of moving parts to this deal and issues to remedy. We had numerous conversations with the borrower (owner) who was very cooperative and forthcoming. In the end, we provided a $4,000,000 Accounts Receivable Line of Credit, a $300,000 Inventory Line of Credit and a $2,535,000 Equipment Loan all of which satisfied the bank, paid the past due taxes, paid down the power bill and provided working capital.
Two years of losses brought on by the pandemic really brought this Company down. In 2021, the owner brought in a consultant who made some needed changes and cut expenses. With the bank paid off and the other issues remedied, the future is looking much brighter. The expectation now is that revenue in 2022 will go back to pre-pandemic levels.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.