The Customer
Contract manufacturer – Canned beverage manufacturer/Co-packer
The Challenge
- Newly formed company (less than three years in business)
- Very little historical revenue & historical losses
- Large CapEx requirement needed to fulfill new customer contracts ($17MM)
- Rapid growth with minimal liquidity & no working capital LOC
- Majority owner did not want to personal guarantee.
- 12 months delivery/installation period for equipment
Done Deal.
- Provided $8MM in Liquidity for a Leaseback against 2 existing production lines.
- Progress payments for project, further protecting liquidity .
- Offered 5-year term with Balloon purchase option to minimize payment .
- Included new ERP System in the financing (At same 60-month term) along with costs related to engineering, delivery, installation & implementation.
- Provided funding in the amount of 42% of last year’s revenue with no additional covenants/restrictions to business.
Business Cycle Volatility Case Studies
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