Rosenthal & Rosenthal completed two transactions for companies in the Midwest, including a $1 million asset-based lending facility and a $3 million non-recourse factoring facility.
The first transaction was with an Ohio-based manufacturer and distributor of organic breakfast bars, previously self-funded by its founder as well as private equity, that was looking for additional financing to fund the growth of the business. Rosenthal stepped in with a $1 million asset-based lending facility, lending on account receivables and, ultimately, on inventory, to provide the working capital the company needs to continue its growth plans.
The second transaction was with a century-old, family-owned manufacturer and distributor of metal stampings, plastic parts and hardware to the furniture, bedding, RV and marine sectors that was seeking a new alternative financing solution. After experiencing pandemic challenges and supply chain issues, the Illinois-based company was refocusing on its core business when one of its largest customers unexpectedly went out of business. As a result, its existing bank was unwilling to continue to lend to the company. The client exited the bank on good terms and an investment bank partner referred it to Rosenthal. Lending on both accounts receivable and inventory, Rosenthal provided a $3 million non-recourse factoring facility, which included a $400,000 letter of credit and much-needed credit protection.
“In both cases, the clients were in need of more flexible financing solutions than those they had utilized in the past through private equity funding or traditional bank lending,” Andrew O’Day, vice president and business development officer for the Midwest region for Rosenthal, said. “These clients and others are ultimately drawn to Rosenthal because of our flexibility, our speed in closing deals, especially in a tough economic climate and our deep industry expertise. We look forward to broadening our reach and expanding Rosenthal’s footprint throughout the Midwest in 2024.”
