Platinum Group secures $4.5MM Senior Secured Credit Facility for International Manufacturing and Distribution Company

The Facility

  • $3,750,000 US Facility Secured by Accounts Receivable and Inventory
  • $750,000 Canadian Facility secured by Accounts Receivable and Inventory

Company Situation

Due to the recession, a 25 year old global manufacturer and distributor with 1200 customers located in 80 countries experienced a dramatic reduction in revenue. The Company's senior secured lender called its line of credit, leaving the company with limited access to working capital until a replacement source could be obtained.

The Company, struggling with unprofitable operations and an eroding revenue base due in part to a declining industry, engaged Platinum to lead the turnaround process and complete the refinancing.

The Platinum Process

Platinum quickly identified those issues which would impede a successful refinancing and pragmatically sought their resolution. Operations in multiple locations were consolidated, resulting in a more efficient business with a reduced cost structure. Platinum helped facilitate an acquisition of a Swiss software company that provided critical technology which repositioned the business for the future, while diversifying core product offerings.

Platinum prepared a detailed refinancing memorandum which outlined the Company's market position, product offerings, management team and competitive advantage in the marketplace. Detailed financial analysis provided key metrics from which a potential financing source could base its decision.

Platinum led a search process, presenting this client through its network of financing sources, leading to multiple term sheet offers. Upon selection of the best candidate, Platinum directed the due diligence process to a close with no variation from the lenders' initial proposal.

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