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.

COLLATERAL CREATIVITY

This New Jersey based company was financed by a commercial finance company that had been acquired by a much larger finance company. As a result, they were no longer a fit for the larger entity and asked to find another alternative. In the meantime, their line was frozen, but their backlog was growing. This created a strain on working capital and cash flow and jeopardized both their customer and vendor relationships.

Lighthouse was able to refinance the line completely and create significant additional working capital by providing a term loan against machinery and equipment and including the collateral of an affiliated company on the borrowing base. The company was able make additional payments to vendors and get back to work.

INCREASED WORKING CAPITAL

The company purchased the assets of a prior manufacturer through a 363 bankruptcy sale utilizing a factoring product. A new management team was brought in with the goal of reestablishing the prior sales base and developing an ethnic line of frozen food offerings. As the new management team gained traction, sales grew creating greater working capital needs that could not be supported by the factor.

Lighthouse was able to structure an aggressive facility against accounts receivable and inventory that improved upon the existing structure thus increasing working capital availability to support sales growth as the company continues to gain momentum after the 363 bankruptcy sale.