Daily News: April 12, 2012

Triangle Capital Access Arranges $5 Million Transaction

Triangle Capital Access Co., Inc. has facilitated the closing of a $5 million credit facility for a Tennessee-based custom extrusion molder, refinancing and significantly increasing the company’s previous revolving loan. The new credit facility consists of both a $3.75 million revolving line of credit and a $1.25 million equipment loan.

The company had lost several large customers over the previous four years due to several customers’ plant closures or relocations and had been unable to re-build revenues, resulting in ongoing losses. Given these circumstances, its bank lender was unwilling to renew its $1.75 million revolving line of credit, and vendor pressure was mounting. The company had approached a number of lenders without success; one lender had conducted a field examination but was unable to approve the deal, and others had issued term sheets, but they fell short of meeting the company’s needs.

When the company was referred to Triangle, by an asset-based lender that had declined its loan request, Triangle’s initial evaluation indicated that there was a strong probability that a greatly expanded senior credit facility could be arranged. Utilizing its deep understanding of ABL underwriting guidelines, Triangle assisted the company in presenting its strengths, explaining the reasons for its poor financial performance, documenting the reasons for its projected financial turnaround and formulating a rational loan structure. The loan request document was completed in less than a week. While many lenders were not interested in the deal, due either to the ongoing losses or to the need for term debt, Marquette Business Credit perceived the viability of the turnaround plan, and structured the transaction that met the company’s needs.

Jeff Sloane, founder and president of Triangle Capital Access Co., Inc., understood the challenges inherent in this refinance project, and also recognized there was a pressing need for this client to refresh its working capital. “We began working on a Plan B to arrange equity capital to reduce the amount of senior debt needed; however, as Marquette gained traction on the senior debt deal, we and the company made the decision to focus on the debt solution, and we are very pleased with the results.”

Triangle Capital Access Co., Inc. specializes in arranging senior debt and junior capital for SMEs experiencing financial discomfort or distress arising either from rapid growth or from weak financial performance.