Lighthouse Financial completed a $5 million credit facility for a North Carolina-based distributor of plumbing and HVAC products.
For more than 100 years, the distributor’s brand has represented commercial and industrial valves and HVAC grilles, registers and diffusers.
The distributor recently made the decision to exit a low margin line of business resulting in reduced revenue. As a result, the borrowing need under its existing line of credit decreased, making its credit facility too small for the incumbent lender.
Lighthouse structured a line of credit against accounts receivable and inventory and arranged a new $2.35 million real estate term loan. The total refinance paid out the incumbent lender completely and generated working capital to support the distributor’s continued growth efforts.
