An industry leading provider of coating and plating services to the automotive industry with two facilities outside of Detroit.
After a 20+ year lending relationship, the Company found itself in forbearance after the automotive market crash of 2008. They were eventually able to refinance the loan, but the new lender was unfamiliar with the business and was restricting cash availability. In addition, a 13 week shutdown of their largest customer’s plant additionally impacted cash flow and led the secured creditor to tighten credit further.
Equity Partners was retained to explore strategic options for the company including new money or an entirety sale. Due to Equity Partners’ involvement, the existing lender was comfortable enough to continue funding while an exhaustive marketing process was conducted.
The Company ultimately chose to refinance the debt with a new lender that seemed comfortable with the business and understood the need for access to a larger revolving line of credit. The key customer’s plant returned to full operation, revenues increased, and the Company’s collateral base grew allowing it to access capital which provided entry into new market segments and long term automotive programs.