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.

LIGHTHOUSE SUPPORTS COMPANY WITH IN-TRANSIT INVENTORY FINANCE & LC SUPPORT

This importer of premium quality crabmeat faced unprecedented challenges as the Covid-19 Pandemic shut down two of its main lines of business, the hotel and cruise line industries. The company reacted quickly to reduce expenses and locate new sales channels, but their revenues declined significantly leading to losses and a reduction in their borrowing needs. As a result, their line usage became too small for the incumbent lender who introduced the company to Lighthouse.

Lighthouse moved quickly to structure a line of credit that not only provided advances against AR, but also against inventory both in the company’s warehouse in Miami and in-transit. Lighthouse further supported the company by providing a sub-line to back letters of credit to enable the company to rebuild its inventory in preparation for the reopening of the economy. As a result of this aggressive loan structure, the company should be well positioned for growth in the future.

LIGHTHOUSE PROVIDES REVOLVER; ARRANGES TERM LOAN

This company imports and distributes high quality plumbing and HVAC products. For more than 100 years, the company’s brand has represented innovative commercial and industrial valves along with HVAC grilles, registers, and diffusers built with confidence and quality.  The company recently made the strategic decision to exit a low margin line of business resulting in reduced revenue. As a result, the borrowing need under their existing line of credit decreased, thus making their credit facility too small for the incumbent lender.

Lighthouse not only structured an aggressive line of credit against accounts receivable and inventory but arranged a new $2,350,000 Real Estate Term Loan. The total refinance paid out the incumbent lender completely and generated significant working capital to support the company’s continued growth efforts.

THE RIGHT FIT

This company, based in North Carolina’s famous furniture heartland, manufactures both case good and upholstered furniture.  For 30 years, the company has been recognized industry-wide for its exquisite quality, service, and value.  The company’s bank was acquired by a larger regional bank which determined that the loan relationship was too small.

The $3,000,000 request fit right in the middle of Lighthouse’s lending range of $1,000,000 to $5,000,000.  Lighthouse structured an aggressive line of credit secured by accounts receivable and inventory that completely paid out the existing bank and created significant additional working capital availability to support continuing operations.