MI-based manufacturing firm providing metal rolled formed moldings and trims to the automotive and appliance industries.
Sales have nearly doubled in the past 3 years, from $12 million to $21million. Lack of sufficient working capital to fund the growth has pinched liquidity, resulting in the company defaulting on it senior lending facility. With the blessing of its senior lender, the company is seeking a growth capital investor, in lieu of a sale of the company, in order to cure its default and establish a more comprehensive capital structure.
Equity Partners is seeking to raise the aforementioned growth capital through identification of and outreach to junior capital/mezzanine debt providers nationwide. Given the company’s challenges, however, Equity Partners has informed the company and its senior lender that raising the desired strip of debt capital is a very challenging mission. Consequently, we have strongly advised the company to limit its search for growth capital to 30-45 days, followed by a consideration of a more robust set of solutions (majority JV partner or sale), should that be required.
Regardless of the outcome, ranging from a straight subordinated debt raise up to and including a majority sale, Equity Partners will deliver the best possible solution available. As a result, the company will be properly capitalized to effectively deal with its challenges and fund its future growth.