New York-Based Printer Inks Deal With Celtic Capital
The Company
Founded in 1980, this New York-based company provides printing services to the newspaper industry.
The Situation
Having been hit hard by the pandemic, the Company experienced a large drop in revenue and sustained big losses. Though the losses were offset by PPP money and ERC tax refunds, operationally, the Company lost money. When the government’s free money ran out, the Company, still showing losses, was out of covenant with its bank which prompted the bank to ask the Company out. Another asset-based lender unable to meet the Company’s needs referred the deal to us.
The Solution
The Company had a revolver and two equipment loans with its bank (though one of the equipment loans was more like a Cap-Ex loan which the bank agreed to keep). The Lockbox and restricted account at the exiting bank were moved to another bank at which point Celtic Capital provided a $3,610,960 financing facility consisting of a $2,500,000 Accounts Receivable Line of Credit, a $500,000 Inventory Line of Credit and a $610,960 Equipment Loan to pay off the bank and for additional working capital.
The Result
The Company projects a significant uptick in new business over the next twelve months and now has the financing in place to support that growth.
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.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.