Super G provided a seasonal second lien term loan to a family office-backed designer, marketer and manufacturer of specialty dancewear.
The company had recently established an inventory-based credit facility with Crossroads Financial to fund general working capital needs, but was in need of additional liquidity during its low season for inventory purchases and general operating expenses. Given the recent inception of the relationship and low inventory asset base due to seasonality, Crossroads Financial was not comfortable providing an out of season over-advance stretch piece.
Super G was able to get comfortable with the business due to historical performance, strong recurring customer base and consistent seasonal trends. It provided a non-dilutive second lien loan with repayment structured around seasonal cash flow, which successfully bridged the company through its low season to busy season collections.
The transaction closed in less than two weeks.