Rosenthal Capital Group (RCG), a private commercial finance firm in the United States, completed a $9.5 million asset-based loan facility for a large-scale manufacturer of graphic printing solutions.
Based in New Jersey, the company serves a diverse customer base of businesses in need of industrial and retail packaging and advertising. The company had received approval for a LOC and a term loan from a new bank and was in the documentation stage when management issued an interim financial statement that reflected a downturn in the business. The bank became nervous, pulled the approval and walked away from the transaction in the middle of the loan documentation process. After incurring significant due diligence and legal costs, the company was now in the tough position of having to find a new lender that was willing and able to get them to a loan closing. Knowing that flexibility and speed to close were critical, the company’s consultant introduced management to RCG. With the assistance of the consultant, Rosenthal was able to get comfortable with management, the company’s financial condition and the business plan forecast.
RCG was able to provide a $9.5 million facility, which included a $4 million revolving line of credit and a $5.5 million term loan. At closing, when the parties learned of an affiliate loan that the existing lender wanted to refinance, RCG approved an additional $1 million within 24 hours to cover that additional liability.
“This deal is an excellent example of how Rosenthal Capital Group approaches all of our transactions not just a lender, but as a problem solver and partner to our clients,” said Robert Schnitzer, Senior Vice President of Business Development at RCG. “This transaction was not our typical structure, but with a little creativity and flexibility, we were able to limit RCG’s risk so that we could provide the additional financing the client needed to pursue their growth plans.”
