Republic Business Credit partnered with a West Coast private equity group to provide a $4.5 million asset-based loan with an accordion of up to $7 million to support a food manufacturer. In addition to the revolver, Republic structured a $3 million equipment term loan that leveraged the manufacturer’s existing manufacturing equipment and a $1 million sublimit for new capital expenditures.
“[Manufacturers] often turn to Republic over the cumbersome SBA 504 or SBA 7A Loan process, ideally, if time permits the entrepreneur can even utilize both, “ Robert Meyers, president of Republic Business Credit, said.
The manufacturer sells into Whole Foods, Sprouts and several boutique stores across California. The private equity sponsor originally acquired the company through a leveraged buyout of a distressed company. Republic partnered with the equity sponsor to provide an asset based loan in fewer than 30 days. After the commencement of the facility a few months ago, the manufacturer is on pace to be cashflow positive for all of 2020.
“We are excited to partner with the management team and the private equity fund to support the manufacturer’s growth in the food space,” Matthew Begley, Republic Business Credit’s chief operating officer, said.
Republic Business Credit partners with private equity firms, banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States. It also provides working capital solutions to help growing businesses, start-ups and companies in turnaround or recoverable distressed situations.
