Asheboro Elastics Corporation – NC

CASH IS KING; TERM LOAN CREATES ADDITIONAL LIQUIDITY

Since 1986, this company has manufactured narrow fabrics for the apparel, bedding, ath-leisure, and other commercial and industrial markets.  With both domestic and foreign manufacturing capabilities, the company has earned a global reputation as a versatile and complete source for high-quality narrow fabrics. The company experienced losses and negative cash flow due to excessive debt service related to foreign acquisitions and lost sales in the automotive space.  New management was able to refocus the business on profitable segments and eliminate under-performing business units.

Liquidity was very important to this manufacturer.  Lighthouse provided an aggressive structure that included a term loan secured by machinery and equipment along with the revolver secured by accounts receivable and inventory to maximize liquidity.  As a result, the company continues to replace lost sales and grow profitably.