$18MM Asset-Based Lending Facility Supports Turnaround and Growth Objectives for Industrial Manufacturer

A manufacturer of forged steel components required additional liquidity to support an ongoing business turnaround. The company also needed an expedited closing timeline, flexibility for a partial sponsor equity repatriation, and the ability to leverage an existing equipment appraisal.

Referred through a longstanding debt advisor relationship, eCapital was selected through a competitive process for its understanding of the company’s turnaround strategy and ability to provide a flexible financing structure. After meeting with management and touring the facility, eCapital gained firsthand insight into the business and tailored an $18 million asset-based lending facility to its specific needs.

The facility features enhanced advance rates on accounts receivable and additional borrowing availability against inventory, while accommodating a partial sponsor equity repatriation and leveraging the existing equipment appraisal to support a timely closing. The customized structure provided significant liquidity to support the company’s turnaround and future growth objectives.