One, Two, Three…This Is Our Fourth Deal with This Borrower
The Company is an Idaho-based fabricator of a wide variety of metal products. The products are made from various materials and are used in the food and beverage, dairy, mining and petrochemical industries. Along with fabrication, the Company also does installation as well as some service and repair.
This borrower’s parent company is one with which we’ve worked on three prior deals. Through the parent company’s manufacturing conglomerate, they purchase companies and make fairly easy operating changes that generate new life into the businesses. In our three prior deals, the need was for working capital; in this instance, financing was needed to close the purchase.
As in two of the prior deals with this borrower’s parent, the accounts receivable financing is handled by another lender. We are brought in to do an equipment-only loan and in this case, we provided a $425,000 Equipment-Only Loan.
The purchase needed to close before our piece, so the seller agreed to carry back a note for $425,000 which we subsequently paid off.
With the borrower’s operational changes and our financing, the Company is projected to do $8-9 million in revenue and should be profitable soon.
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.