The economic downturn had a significant impact on a transportation company's revenues, driving them down from $77 million to $54 million. As a result of their operating loss, the existing loan was offside covenant so the bank asked the company to seek alternate financing.
Roynat structured a $7.5 million credit facility to pay out the bank and manage the downturn. The revolving line of credit was margined against 85% of accounts receivable under 90 days. The transportation company is now on the road to recovery, projecting revenues of $65 million and EBITDA in excess of $2.5 million.
A manufacturer wanted to acquire a small but savvy competitor and needed to leverage their assets for purchasing power while ensuring they had the working capital required for a successful transition.
Roynat provided a $5.5 million term loan against equipment to assist in the purchase price and a $3.5 million revolving line of credit leveraging accounts receivable and inventory for working capital purposes.