Rosenthal & Rosenthal completed a $1.75 million purchase order financing facility to support a high-security printing and technology company working with the U.S. government.
The New York-based company was selected for a government agency project which involved securing high-security materials from a European supplier. The supplier required a letter of credit (LC) to ship the materials and would not release the materials without the LC in hand.
Phoenix Management Services, a turnaround and interim executive firm, had been serving as the interim CEO of the company and recommended Rosenthal for this opportunity. Rosenthal provided the $1.75 million purchase order financing facility and issued the LC to the supplier to release the materials for the project. In addition, as the company already had an asset-based loan with an existing lender and a term loan facility with another lender, Rosenthal obtained intercreditor agreements with both outside lenders to provide the support the client needed to deliver on the contract.
“With their deep understanding of the nuances of government contracts and complex supplier agreements, Rosenthal was uniquely positioned to assist on this transaction,” Jim Fleet, senior managing director at Phoenix Management Services, said. “Rosenthal is a trusted partner and we were pleased they were able to assist the company to deliver on its government contract without any disruption — a tremendous accomplishment, especially in this unpredictable, fast-moving global trade environment.”
“This transaction is a great example of Rosenthal’s ability to provide flexible financing solutions that help our clients troubleshoot challenging situations and get the support they need, when they need it,” Megan Flaherty, senior vice president and underwriting manager for purchase order financing at Rosenthal, said. “Purchase order financing is an excellent tool for clients looking to complement existing factoring or asset-based loan facilities. And our history working closely with third-party factors, asset-based lenders and other banks make us an effective partner for these types of transactions.”