Commercial Finance Partners (CFP) facilitated the closing of a $5.2 million conventional term loan and a $4 million revolving accounts receivable line of credit to support the acquisition of a metal stamping and plating company located in Texas.
CFP has closed multiple prior transactions with the sponsor for this acquisition. The term loan and revolver will support both the acquisition and ongoing working capital needs. The remainder of the transaction was financed by the sponsor, as well as the seller. Without the collateral to support a traditional equipment leveraged buyout, the company engaged CFP to provide a solution that would yield an LTV in excess of 100% on the term side while carving out the receivables for ongoing liquidity.
“The transaction we closed is a quintessential transaction for Commercial Finance Partners and how we are able to put together structurally complex solutions for our clients” Darren Palestine, managing partner at CFP, said. “It was great to work with an existing client and deliver another successful outcome for the growing portfolio of businesses for the sponsor.”
