LIGHTHOUSE DESIGNS AGGRESSIVE WORKING CAPITAL SOLUTION

The company experienced revenue decline during the Covid-19 pandemic as a result of retail store closures followed by supply chain challenges. As a result, efforts were enacted to increase B2C sales and add efficiencies to the business. The company and its private equity backers were looking for a lending partner that could help them navigate through the current challenges caused by inflation and higher interest rates which has dampened consumer discretionary spending. Lighthouse structured an aggressive line of credit secured by accounts receivable and inventory to support the business as it returns to profitable growth.

LIGHTHOUSE FABRICATES WORKING CAPITAL SOLUTION

Founded in 1990, the company is one of the largest manufacturers and installers of natural and engineered surfaces and glass enclosures for the kitchen and bath in the Southeastern United States. After a management buyout, the company embarked on an aggressive growth strategy, tripling sales in a two-year period. However, the rapid growth led to several operating inefficiencies, resulting in losses. After successfully turning the business around, the company needed a working capital lender to support new growth. Lighthouse was able to provide an aggressive line of credit against accounts receivable and inventory that paid off the existing lender and provided additional liquidity to support the new growth.

LIGHTHOUSE CREATES ADDITIONAL LIQUIDITY WITH TERM LOAN

The company is a proud veteran-owned business with extensive experience in the Automotive, Packaging and Textile Industries manufacturing ISO-certified soundproofing components, adhesives, custom safety insulation, and custom packing and shipping materials. The company’s growth led to working capital needs that their current bank could not support. Lighthouse was able to provide an aggressive line of credit against accounts receivable and inventory along with a term loan that paid off the existing lender and provided additional liquidity to support new growth. The debt structure included a $4,000,000 Line of Credit and a $250,000 Term Loan secured by machinery and equipment.

LIGHTHOUSE PROVIDES SALVE TO AID COMPANY BACK TO FINANCIAL HEALTH

Founded in 2001, the company markets and sells its own branded product lines of enemas, feminine hygiene products, over-the-counter medications, and personal care products.  In addition, the company provides contract compounding and packaging for many private label brands.  The company’s products are made in America by a dedicated team of professionals.    Due to severe labor shortages during the Covid-19 Pandemic, the company lost sales and incurred extraordinary compliance charges from their customers.  Due to the resulting losses, the company’s incumbent bank asked them to seek alternative financing.  Lighthouse stepped in and provided an aggressive line of credit secured by accounts receivable and inventory that not only paid off the existing loan but provided additional liquidity to support the company’s new growth opportunities.

TOTALLY TUBULAR; LIGHTHOUSE PROVIDES SUITE OF DEBT PRODUCTS

The company was originally set up to produce diesel injection lines and has since expanded to produce a full range of industrial products, supplying tubing solutions to some of the world’s largest blue-chip companies for over 3 decades.  The former parent company filed for bankruptcy protection in the UK eventually selling the US company to another UK based investment firm.  The incumbent lender gave the new owner six months to refinance the debt of the US entity.  After initially assisting with the due diligence ahead of the purchase, Lighthouse provided a suite of debt products to pay out the lender and provide additional liquidity to support working capital.  The debt structure included a $2,500,000 Line of Credit, $625,000 Term Loan secured by machinery and equipment, and a $550,000 Mortgage on the real property, which was subsequently sold to a financing partner.

LIGHTHOUSE FACILITATES MOVE FROM CALIFORNIA TO NORTH CAROLINA

The company designs and manufactures tools utilized in the automotive, commercial, industrial, and DIY markets and distributes internationally. The company continually focuses on innovation to meet new requirements and satisfy needs in the electrical market. After completing its move from California to North Carolina, the company was seeking a local relationship and was referred to Lighthouse. Lighthouse structured an aggressive line of credit secured by accounts receivable and inventory that not only paid off the previous lender but provided ample availability to support the company’s continued growth initiatives in North America.

LIGHTHOUSE REMAINS PATIENT; CLOSES TRANSACTION AFTER NINE MONTHS

This manufacturer of agricultural tillage, cultivating, and harvest equipment managed through the 8-year trough of the Ag Super Cycle and was poised to take advantage of an industry uptick.  However, the effects of the Covid-19 pandemic and management turnover slowed their efforts.  Lighthouse began due diligence in September of 2021 and agreed to wait while the owner of the business restructured the management team and brought all reporting current.  The transaction was complete in June of 2022 with Lighthouse providing an aggressive Line of Credit against Accounts Receivable and Inventory

LIGHTHOUSE SUPPORTS COMPANY POST BANKRUPTCY

The company experienced significant sales declines as a result of the Covid-19 pandemic as athletic events and seasons were canceled leading to a bankruptcy filing and reorganization.  After exiting bankruptcy, the company needed an understanding lending partner to pay out a previous lender and provide additional working capital.  Lighthouse structured an aggressive revolving line of credit against accounts receivable and inventory and provided a term loan secured by machinery and equipment that not only paid out the existing lender but created a significant amount of additional liquidity.

LIGHTHOUSE AGGRESIVELY LEVERAGES INVENTORY TO CREATE LIQUIDITY

This TN based designer, importer, and distributor of lifestyle apparel needed a more traditional line of credit to support it’s current and projected growth.   Given the existing challenges in the Asian supply chain, the company also wanted to get ahead of any potential supply issues by importing product for several selling seasons.  Lighthouse was able to support this strategy with an aggressive inventory loan structure in conjunction with the accounts receivable allowing the overall loan to be inventory heavy during this and future, seasonal inventory build-ups while also advancing against in-transit inventory.

LIGHTHOUSE REFINANCES PEG OWNED COMPANY CREATING SIGNIFICANT LIQUIDITY

After the initial acquisition by a Kentucky based private equity group and two additional add-ons, the company was burdened with too much overhead leading to operating losses and lender fatigue. As a result, the incumbent lender lowered the existing line of credit creating a working capital strain. Lighthouse structured an aggressive line of credit against accounts receivable and inventory that completely paid out the existing facility and generated significant working capital to support the company as it executes its internal turnaround plan and seeks additional sales growth.