Cortland Credit Group closed a $20 million ABL revolver for a Canadian consumer staples company focused on manufacturing, importing and distributing fine food products across North America. The revolver includes a $10 million uncommitted accordion, allowing the borrower to increase the overall commitment to $30 million. The transaction was part of a refinancing of a large Canadian Bank to support working capital growth._x000D_
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Privately held and established in the early 1950s in the greater Toronto area, the company originally focused on importing food products from Europe. Today, the company continues to import but also produces products under its own brands that are sold by large national and independent grocers across Canada and the Northeast USA._x000D_
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While the company was growing, it faced liquidity challenges as a result of various operational and inventory management inefficiencies that were complicated by COVID-19, global supply chain disruptions, and inflation. Their incumbent lender, a large Canadian bank, had grown impatient with the management-led efforts and indicated its desire to exit. As a result, the company hired a restructuring advisor to both refocus on profitability and secure alternative financing._x000D_
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“We are proud to partner with a 70+ year-old business in the consumer staples sector,” Sean Rogister, CEO at Cortland Credit Group, said. “Our team’s commitment to understanding the company’s unique situation and providing a well-thought-out credit structure will allow the company to normalize cash flow and emerge stronger. By continuing our entrepreneurial thinking combined with our institutional knowledge, we continue to lead in our respective market, providing private credit for working capital in the lower middle market.”
Forward for Specialty Finance
