Buse Holdings LLC – $4.5MM Credit Facility was a Game Changer

When it comes to meeting complex financing needs, certainty and speed of close matter. Gibraltar Business Capital demonstrated its ability to deliver both by crafting a creative solution for Buse Holdings when a traditional lender could not act fast enough.

 

Overview


The Bridgeton, Mo.-based maker and distributor of wire harnesses, cable assemblies and electronic controls was in need of financing amid liquidity challenges tied to recent acquisitions. The acquisitions and higher debt load forced Buse to stretch its payables, which in turn impacted vendor relationships and profitability. Buse, which is owned by private-equity investors, initially had reached out to Gibraltar for financing help, but opted to pursue a better rate from a bank in the early phases of the company’s financing search.

Fast-forward 60 days, and Buse was still negotiating with the lender, who had expressed some reluctance to close quickly. Gibraltar stepped in and efficiently designed a $4.5 million credit facility that relied on inventory, machinery and equipment, as well as investor support.

“By staying in touch with the investors, we were able to react quickly when the bank communicated some hesitation to close and find a structure that was acceptable to all parties and in short order,” said Dave Meier, senior vice president at Gibraltar. “Now, with normalized terms with its vendors and additional liquidity, Buse management believes it will be able to optimize profitability.”

“Gibraltar was able to deliver quickly and reliably on its financing proposal when another bank wasn’t,” Meier said.

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