The Customer
Large food and beverage operation was seeking $42MM to expand with equipment and infrastructure in support of growing contracts with major retail outlets.
The Challenge
- Acquiring equipment from 7 different vendors and managing project disbursements.
- Nearly $1B in Revenue, EBITDA positive, but DSCR below 1.0x
- Large customer concentrations
- Very fast turnaround with impending deposits to be made or the risk of losing the equipment, causing additional delays and potentially lost business for the customer.
Done Deal.
- Broke up the request into three smaller request to obtain approvals within 30 days of the signed term sheet for the first processing line, and secured approval for the remaining two lines shortly thereafter.
- First National Capital administered all invoices and payments to the various vendors involved, ensuring a smoothing funding process through the project and saving customer time and money on administrative services.
- 100% advance rate, no covenants, no guarantees, equipment specific financing allowed the customer to maintain existing bank lines with no conflicts of interest.
- By segmenting the risk into three separate transactions, customer was provided the ability to delay the purchase of the third line without any impacts to the existing financing.
Complementary CapEx Funding
Highly competitive, flexible CapEx funding that complements senior lending relationships.
