Rosenthal & Rosenthal completed a $2 million revolving credit facility and a $750,000 term loan to support the working capital needs of an Ohio-based finishing and coatings company serving the automotive, appliance and electrical industries.
In business for more than 60 years, the coatings company had an existing relationship with a national bank. However, the bank faced limitations on its lending capacity given recent performance during the COVID-19 pandemic. The coatings company’s advisors, Rick Szekelyi and Jason Egger of Phoenix Management Services, recognized the positive impact that additional working capital would have on the business and introduced the company’s executives to Al Foster, vice president and business development officer in Rosenthal’s Southeast office. By leveraging the company’s accounts receivable and real estate to support the revolver and term loan facilities, Rosenthal provided more working capital than the coatings company’s bank was able to offer to support the company’s rebounding revenues and growth.
“The key to the transaction was finding the right partner to provide the necessary financing solution. The Rosenthal team was willing to put in the time and energy to learn about the transaction and spend time with management to understand their needs and come up with a creative solution,” Egger said. “Rosenthal’s ability to execute quickly and provide a flexible lending solution was key to this successful transaction.
“Szekelyi and Egger were instrumental in educating and coaching the management team as it transitioned to an ABL lending structure for the first time. By taking the time to learn about and understand the companies we lend to, we were able to earn their trust,” Foster said. “Rosenthal is family-owned and independent, which means we aren’t limited by red tape and regulations that often prevent other institutions from offering clients the funding they need. On this transaction, our team provided a flexible lending solution by leveraging the real estate and accounts receivable, which enhanced the company’s liquidity and will allow them to continue to grow their business.”