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Plastic Products Manufacturer – Capital Sourcing Case Study

Case Studies, Industrials Manufacturing, Industry Industrials Manufacturing, Transaction Financings and Recapitalizations, Transaction Restructuring, Transactions

Our Client

A Plastics Products Manufacturer serving the automotive, appliance, and other industry OEMs and Tier I’s had missed their forecasts for two consecutive years due to customer revenue issues.

The Situation

The client’s company faced a series of business interruptions, including a fumbled product launch by their largest customer and an extended strike experienced by their second largest customer. These events led to unexpected lower demand and caused the company to miss their forecast for two consecutive years.

Despite this hardship, the company reacted quickly and managed to remain profitable. However, the company briefly breached bank covenants and the relationship with the senior lender became strained.

The Solution

The client company’s management approached Cascade Partners to assess their financing options. After a thorough review, we concluded that the company boasted strong management, excellent financial reporting, and an abundance of collateral, making them an attractive prospect for several national asset-based lenders.

To help the management team secure financing, we supported them in developing a comprehensive financial package. We also introduced them to several lenders and facilitated management meetings and plant tours, providing valuable insight and guidance every step of the way.

Finally, we helped the company to review proposal letters and negotiate the final terms, ensuring that they secured the best deal possible.

At Cascade Partners, we’re committed to helping our clients achieve their goals by providing first-rate financial consultancy services.

The Cascade Advantage

We secured a larger credit facility with a national Asset-Based Lender. Not only does the new lender better address their current and long-term growth plans, they also offer a much lower interest rate on both the line of credit and term loan – 40% below those of their previous lender. In addition, the improved covenants provide more flexibility and protection should any historical issues repeat themselves in the future.