SEASONAL STRUCTURE CREATES ADDITIONAL AVAILABILITY

Founded in 1948, the company is a leading manufacturer of cold weather starting aids along with a wide variety of exhaust clamps, placards, and other automotive products.  For over 70 years, the company has provided high quality American made products and exceptional service to the OE and aftermarket segments.  Sales declined over the last two years related to unseasonably warm winters straining profits and cash flow.  The prior President along with a new, experienced CFO were put in place to lead the company back to profitability.

Lighthouse took the time to analyze and understand the company’s highly seasonal cash flow and structured a revolving line of credit secured by accounts receivable and inventory to support the seasonality.  By allowing the loan to be inventory heavy during seasonal revenue dips, Lighthouse provided this manufacturer with the necessary liquidity to build inventory ahead of its sales season.

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.

TERM LOAN CREATES ADDITIONAL LIQUIDITY

This manufacturer has been producing premium quality value added food products since 1998.  Research and Development is key to this company’s success.  The company has dedicated staff and onsite kitchen facilities that allow it to focus on the development of both core and innovative products regarded as cutting edge in both taste and eating experience.  Due to the loss of a large seasonal client, the company experienced short term losses as it sought to replace the lost business.  New, less seasonal sales have been developed allowing the company to return to profitability.

Lighthouse provided an aggressive revolving line of credit secured by accounts receivable and inventory.  In addition, Lighthouse added a term loan secured by machinery and equipment to increase liquidity.   As a result, the prior bank was paid out completely, and the company had the liquidity required to support the new sales growth.

REVOLVER CREATES LIQUIDITY

This distributor was formed in 1992 in Atlanta by a father and son duo that were pioneers in the retail display fixtures industry. The company was started to meet the needs of retailers and contractors all over the world and has a unique business model that allows them to work directly with distributors to offer the most extensive variety of standard and custom display fixtures worldwide. Due to the proliferation of ecommerce, sales have been declining over the past several years. The company has taken steps to right-size their cost structure and is developing products outside of the retail sector.

Lighthouse partnered with a real estate lender to refinance the entire bank debt and provide the company with ample liquidity to support working capital and new product development.

PATIENCE IS A VIRTUE

This company manufactures bricks and other architectural veneers for the commercial and industrial markets.  Due to the unexpected diversion of natural gas from their facility during the winter of 2015, startup expenses related to a new product, and write-offs related to prior years’ sales, the company experienced losses and their bank suggested they seek alternative financing.  However, the new product was gaining traction and the company needed working capital to support the growth.

Lighthouse partnered with an SBA lender to refinance the entire bank debt and provide the company with ample working capital to support the growth of the new product line.  Several issues surfaced for the SBA lender during underwriting that delayed funding for more than six months.  All parties involved remained patient and diligent, worked through the issues, and successfully closed the transaction.

PRIOR CLIENT RETURNS; FUNDING IN 35 DAYS

Tampa-based IC Intracom develops, manufactures and distributes PC and home-media connectivity accessories as well as professional networking products under the brands Manhattan Products and Intellinet Network Solutions. With a manufacturing facility in Asia as well as sales and distribution centers in 13 countries, IC Intracom products are available from more than 70,000 businesses located in over 100 countries around the world.

Lighthouse had the good fortune of working with this client from 2005 to 2008. At that time, the company refinanced with a sister company’s bank. Shortly thereafter, the company embarked on an initiative to combine the global companies under one accounting and financing umbrella. Due to global cyclicality, the company’s new lender was unable to continue financing all of the sister companies. As a result, the company contacted Lighthouse to inquire about financing the U.S. operations. Lighthouse was able to structure an aggressive line of credit against accounts receivable and inventory that paid out the existing lender and provided ample working capital — all in 35 DAYS.

INCREASED WORKING CAPITAL SUPPORTS GROWTH

This company has a long history in the personal flotation device (PFD) industry. Having previously started a company which he sold to a large well known outdoor products company, the founder returned to the PFD industry in 2002 with new life jackets and the goal of creating products that were first in class and good for the environment. After successfully growing the PFD business, the company started making footwear in 2012 because, in their words, “sandals are awkward, neoprene booties are toxic, and there was no river shoe with adequate grip, let alone good looks.”

Sales for the footwear segment have been growing significantly over the last few years, and the company’s bank sought out Lighthouse to support the growth. Lighthouse was able to structure an aggressive line of credit against accounts receivable and inventory to support the seasonal working capital needs of the business. The additional working capital will allow the company to continue the growth in the footwear segment that compliments the established PFD business.

RE-FINANCING CREATES LIQUIDITY AND LOWERS COST OF CAPITAL

This specialty textile manufacturer was acquired by a financial sponsor in mid-2017 out of the portfolio of a distressed lending institution.  Given the situation of the distressed lending institution, timing was of the essence.  The sponsor utilized a bridge loan in order to complete the transaction before liquidation proceedings were initiated.  After the transaction was completed, the sponsor began seeking refinancing options.  After pursuing several alternatives, the sponsor chose Lighthouse due to our flexibility and responsiveness.

Lighthouse structured a line of credit against accounts receivable and inventory in conjunction with a term loan from a second lien lender that not only paid off the bridge loan but created significant liquidity and lowered the company’s overall cost of capital.

SEASONAL STRUCTURE CREATES FLEXIBILITY

This designer, manufacturer and distributor of bedding and bath products was looking for an alternative lender to support its working capital needs. The challenge was finding a lender that could support their seasonal sales cycle. The company’s sales were heavily weighted in the 3rd and 4th quarters with the need to build inventory in the 1st and 2nd quarters. The prior lenders the company spoke with were unwilling to consider an inventory heavy structure.

Lighthouse focused on structuring a line against accounts receivable and inventory that followed and supported the seasonal working capital needs of the borrower creating the flexibility needed to build inventory during the slower sales season. As a result, the facility created a substantial amount of working capital availability at close.