Gibraltar Crafts Two-Part Funding Solution to Meet Industrial Company Financing Needs
The two-part funding solution delivered a meaningful amount of funding in under 20 days from term sheet signing with access to the remainder of the funding after diligence was complete.
Challenging Timing of Funding Needs
An Illinois-based precision component manufacturer was facing just that challenge. Operating challenges within certain divisions of the company created a need for working capital just as the holidays approached. And, the private equity ownership was facing an unexpected, compressed refinancing timetable.
The company had a 40+ year history, valuable equipment and accounts receivable, but a temporary need for funding while underwriting was still in progress.
Fast and Flexible Response
Gibraltar’s team was able to craft a two-part funding solution that delivered a meaningful amount of funding in under 20 days from term sheet signing with access to the remainder of the funding after diligence was complete.
The collateral base for the credit facility consisted of the company’s equipment and accounts receivable. Gibraltar was able to fund part of the loan before the holiday, even with a partially completed diligence list, by being creative in leveraging other valuations and diligence to bridge the gap. Gibraltar was comfortable funding the first part of the loan in part because the company already had in hand an equipment appraisal from a GBC-approved appraiser. In addition, the Gibraltar team was knowledgeable enough about the collateral, the company and its people to feel comfortable moving forward with the partial funding.
Gibraltar then funded the remainder of the credit facility in the new year, when the full diligence package was completed. In total, before and after the holiday, the Company received $6.5 million in an asset-based line of credit to meet short-term needs and support them in getting back on track for financial stability.