Contract Manufacturer

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.

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