Commercial Finance Partners (CFP), a debt advisory and direct lending platform, closed a $4.5 million multi-tranche financing for a Southeast-based steel and tube manufacturer and distributor. The transaction included a $4 million asset-based revolving line of credit and $500,000 in mezzanine financing.
The company was operating under an existing bank facility that no longer fit its capital needs. An SBA loan was initially explored but could not fully bridge the gap, creating a capital shortfall that required a creative, multi-layered financing structure under a compressed timeline.
CFP structured a two-tranche solution to execute a full takeout of the bank obligation. The asset-based line of credit, collateralized by accounts receivable and inventory, provides flexible working capital to support ongoing operations and growth. The mezzanine facility was layered in to close the remaining gap and complete the capital stack.
“This deal is a great example of what we do every day at CFP’ we don’t just find a lender, we solve the entire capital structure,” Karen Small, senior business development officer at CFP, said. “The borrower needed more than a conventional refinance. By pairing an ABL facility with mezzanine financing, we were able to deliver a clean transition and a capital structure purpose-built for the cyclical demands of the metals distribution industry. That’s the kind of outcome our clients count on us to deliver.”
