Republic Business Credit financed a $9 million revolving credit facility and a $3.5 million real estate term loan for a family-owned, Illinois-based food manufacturing company.

In business for more than 50 years, the company, a specialty food manufacturer and distributor, sells its products to a variety of restaurants, specialty grocery stores and retailers throughout the U.S.

In 2023, the company experienced some minor cash flow struggles due to the rising costs of meat and supply chain issues. Combined with slowing sales, attributable to a decrease in consumer spending across its categories, the company’s incumbent bank sought to refinance its loan after a more than 20-year relationship.

The company engaged Kevin Kelly, managing partner of KFK Advisors, who helped the company identify refinancing options and sourcing proposals. He then referred the business owners to Republic Business Credit.

“This company was demonstrating that it had the ability not only to recover but to grow and retain its footing as an industry leader despite setbacks,” Kelly said. “I trusted Republic Business Credit to support the business and provide necessary liquidity after a challenging year.”

The company was tracking ahead of its turnaround plan and sought the right lender to support its success and plan for growth.

“Our ability to underwrite, understand and correctly structure the proforma turnaround business plan makes us a great partner for middle-market and lower middle-market businesses across the food and beverage industry,” Robert Meyers, president of Republic Business Credit, said.

“We were encouraged by their ability to increase sales while reducing overhead costs in a tough, competitive environment,” William Kemp, senior vice president of business development at Republic Business Credit, said. “This company was ahead of plan throughout the underwriting process, which gave us even more confidence in its management team and turnaround consultant. We look forward to supporting their continued growth.”

The financing from Republic Business Credit, totaling $12.5 million, provided not only the capital to refinance the company’s current lender, but it also provided more availability and the opportunity to fund an equity distribution.

“Republic is always proud to support entrepreneurial, family-owned businesses to emerge from recoverable distress,” Meyers said. “We were glad that our lending solution enabled this company get back to focusing on the business, rather than the finances.”