Lighthouse Financial completed a $5 million credit facility for an Atlanta-based wholesale distributor of flooring and related materials serving Alabama, eastern Tennessee, Florida, Georgia, North Carolina, South Carolina and parts of Mississippi and Virginia.
After the initial acquisition by a Kentucky-based private equity group and two additional add-ons, the company was burdened with too much overhead, leading to operating losses and lender fatigue. As a result, the company’s incumbent lender lowered its existing line of credit, creating a working capital strain. Lighthouse Financial structured an aggressive line of credit against accounts receivable and inventory that completely paid out the existing facility and generated working capital to support the company as it executes its internal turnaround plan and seeks additional sales growth.
