This Company manufactures machining and drilling products and is located in the Midwest.
The Company had been with a large bank for a number of years then moved to a smaller, regional bank that then asked the company out after a couple of down years. This was the point at which Celtic Capital, and one local and one out-of-state finance company were called in.
The deal wasn’t easy; it was equipment heavy, the owners were looking for a Line increase, and there was a challenging real estate component to the deal.
Celtic Capital structured a $2.75MM A/R facility and a $4MM Term Loan that would pay off the bank and provide the owners with the working capital they needed and the Line increase they wanted. But what really won the deal over the competition was the fact that relationships were very important to this company’s owners. Mark Hafner and Alex Falo, President/CEO and CCO, respectively, of Celtic Capital, came to meet with the owners and tour the facility. They took great interest in the company, in the people, and answered questions to the point that the owners felt very comfortable doing business with them. Additionally, the owners were comfortable moving forward on the A/R and Term components without having resolution on the real estate component.
As a result of our quick due diligence process, and willingness to take the bank out on the A/R and equipment, the bank subsequently decided to keep the real estate loan, which led to our ability to close our deal soon thereafter.