Lighthouse Financial completed a $4 million credit facility for a North Carolina based manufacturer and distributor of narrow fabrics. The transaction included a $3.650 million revolving line of credit along with a $350,000 term loan.
The company experienced losses and negative cash flow due to excessive debt service related to foreign acquisitions and lost sales in the automotive space. New management was able to refocus the business on profitable segments and eliminate under-performing business units.
Lighthouse provided a term loan secured by machinery and equipment in conjunction with a line of credit secured by accounts receivable and inventory that created significant additional working capital availability to support continuing operations.