Based in Orange County, CA, the customer is a $200 million dollar privately-held healthcare company. They have the most comprehensive suite of genetic testing solutions for inherited and non-inherited diseases available in the United States.
The company had historically operated without any requirement to borrow, instead using its significant cash flow to fund operations and CAPEX. A desire to expand its testing operations, implement a stock repurchase program and reserve cash on hand to fund strategic M&A activities drove the company to investigate the financing industry for a solution. They needed a financing source that could fund an estimated $8.3 Million of capital improvements for a building valued at only $5.7 Million. Additionally they had $15 Million of new equipment that would be installed the new building. Given their strong cash flow, they also didn’t want to commit to long term financing with prepay-type penalties. The company needed a lender willing to customize a lending agreement, with local decision making capability and without the oversight of a large, inflexible and arduous ‘investment committee’.
First National listened. We heard the horror stories of past equipment ‘leasing’ efforts from inflexible, short sighted companies. We interviewed, at length, the various decision makers, influencers, and company principals to understand every concern, desire and ultimate outcome from project launch to the facility’s grand opening. We shortened pre-payment periods, re-defined terms, negotiated payment schedules and provided a complete solution, allowing them to secure capital for 150% of the property value for their project needs.
The client began their investigation for a financial partner with six candidates made up of national banks, regional banks and commercial finance companies. They chose First National because we excelled in knowledge, expertise, and experience providing solutions to the challenges they faced. We separated ourselves from the competition by building a relationship-based approach to provding a flexible, logical, cost effective and long term solution….not just for this $23 Million project, but for future projects to come.