The Customer
Food Manufacturing Company, Co-Op
The Challenge
- DSCR was tight at roughly 1:1 and had ben declining in recent reporting periods
- Company was in transition of decreased volume from its largest customer
- Equipment being financed was specialized specifically for companies needs
- Company was relying on a contract from a big box retailer with certain volume requirements and outs should the company not perform
- Company operates as a Co-Op adding an extra level of complexity
- Company financial performance is vulnerable to commodity prices for grain and animal diseases
Done Deal.
- FNC approved $32,000,000 in financing for two (2) automated production lines
- FNC acted as a bolt-on resource to the company’s existing senior lender
- FNC believed in the management team and its ability to execute on its business plan
- FNC was able to provide progress payments to the vendor and structure the transaction in a way that helped the company match its cash out flows with cash inflows to help improve cashflow.
Business Cycle Volatility
Wider credit appetite for companies in all phases of the business cycle.
