Daily News: February 20, 2014

LMC Provides A/R Facility, Term Loan to 3PL Company

The London Manhattan Company (LMC) announced it recently sourced a $5 million A/R secured facility and $8.1 million term loan with separate specialty lenders to refinance a rapidly growing specialty logistics, 3PL and warehousing company. The term debt refinance facility contained a $3.5 million stretch piece to allow repayment of existing financing at par.

The company wanted to refinance its existing debt to provide adequate working capital for its expanding business, including its 3PL operations. Proceeds were used to refinance existing debt. A 3PL (third party logistics) company supplies one-stop-shop service to its customers who wish to outsource all or part of their supply chain.

The new financing will allow the company adequate working capital to operate an expanding footprint offering third-party logistics services to its customers. This one-stop-shop approach to the business includes integrated warehousing, transportation and broker operations for the customer. LMC arranged for the two facilities, each from a specialty lender in the industry, to close simultaneously to pay off the company’s existing debt.

The borrower was a successful logistics company determined to expand its regional footprint into a national one. Since the company offers some mix of warehousing, cold storage, packing, distribution, trucking and transportation services to its customers, its operations were becoming increasingly complex. The company felt it needed financial providers who understood its business, allowing it to optimize its present activities and to roll out future expansion initiatives smoothly.