Pandemic Losses Led to Debt Restructuring for This TN Company
The Company
This Company is a Tennessee-based concrete polishing and restoration service provider.
The Situation
The business has been around for a while but struggled through the pandemic. Having suffered losses for the past couple of years, covenant violations necessitated the refinancing of the Company’s bank debt and mezzanine financing. The mezzanine lender brought in Celtic Capital.
The Solution
Celtic Capital provided the Company with a $2,000,000 Accounts Receivable Line of Credit, a $400,000 Inventory Line of Credit and a $950,000 Equipment Loan. Our funding paid off the bank (line of credit and Company credit cards) and helped restructure the mezzanine debt.
The Result
Now that the refinancing has been completed, the Company’s focus is to turn around the P&L and put pandemic losses behind it. Management is encouraged in that prospects for 2023 are looking very good.
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.