Rosenthal & Rosenthal recently completed several factoring and asset-based lending deals through its Southeast office.
After experiencing COVID-related supply chain and operational challenges, a Georgia-based manufacturer and distributor of military, law enforcement, public safety and outdoor apparel and equipment was seeking a more flexible financing solution. A consulting firm charged with assisting the company with its refinancing and operational restructuring efforts introduced the client to Rosenthal, who stepped in to provide a $10 million revolving line of credit, primarily secured by all assets of the company, including a permitted over-advance secured by unencumbered corporate and personal real estate. The transaction involved traditional advance rates against eligible accounts receivable and inventory.
“Rosenthal’s creativity, our flexibility and our ability to provide additional liquidity set us apart from other alternative lenders and bank lenders,” Gene Walsh, senior vice president and business development officer at Rosenthal, said.
In addition to closing a $25 million recourse factoring deal for a private equity-owned pharmaceutical and healthcare products company, Rosenthal’s Southeast office also closed two non-notification factoring deals in the furniture space. Both based in the Southeast, the furniture companies each have annual revenues in excess of $100 million and were seeking unique servicing on their accounts receivable, which prompted engagement with Rosenthal.
In each transaction, the companies worked with Rosenthal’s Southeast office and customer credit division to structure programs allowing for customer credit mitigation for current and anticipated business. Rosenthal also structured a $2.5 million term loan in tandem with one of the factoring facilities, providing additional capital for the borrower without any disruptions to the existing senior lender’s debt or collateral positions, benefiting all parties. Rosenthal acted as sole arranger on these facilities.
“In each of these transactions, there were complexities that made it difficult for other capital solutions firms to find a solution and close in a manner that was satisfactory to the client,” Brian Resutek, senior vice president of business development at Rosenthal, said. “The Rosenthal team took the time and effort to understand the client’s concerns and also find the right lender partner for the transaction.”
