A specialized, electronic, contract Manufacturer was seeking to refinance its existing senior credit facilities. The Company was underserved by its current Bank who was not providing sufficient support for the Company’s international needs and didn’t seem to understand the business, and its corresponding challenges. The Company had a very strong balance sheet but lost a significant amount of money in each of the last two years. The owner of the business had supported the business during these lean EBITDA years with additional capital, but the incumbent Bank decided not to renew the credit facility for another year. The Company retained Concord as its exclusive financial advisor to arrange a more attractive capital structure and identify a Bank that understood the company’s business and objectives. The owner also wanted to find a new Banking relationship that did not require a personal guarantee. Concord quickly identified the most appropriate senior lenders for the Company and prepared a detailed memorandum summarizing the key aspects of the company, coupled with setting up a data room with all pertinent information for select lenders. Concord conducted a targeted and efficient deal process with regional and national asset-based lenders along with a host of real estate lenders. Concord procured multiple competitive proposals for the transaction. The Company was able to achieve its objective of obtaining an attractive financing structure with a National Bank that can support its international needs with no personal guarantees. The Company’s owner and management team were impressed with Concord’s proven process, the resulting financing structure and the attractive economics of the transaction.
