Transaction Overview

• Working capital constraints had restricted the Company's growth and The Lenox Group was retained to execute a sale-leaseback transaction on the Company's manufacturing facilities and to find a new senior credit facility to consolidate "one-off" loans and to allow for expansion of operations.
• The Company is a fabricator and manufacturer of structural and plate steel products for commercial and industrial customers.  Additionally, the Company builds customers' proprietary finished products in the power, railroad, pulp, paper and material handling industries and offers field erection and installation services.
• Increased availability on revolving loan facility to fund future growth and capital expenditure requirements. 

Transaction Process

• Assembled a Confidential Information Memorandum describing the Company and transaction while developing a list of sale-leaseback firms to contact regarding a potential investment. 
• Lenox Group bankers canvassed the most likely lending prospects in the senior debt market.  Potential lenders were chosen based on industry, transaction size and geography.
• Selected a leading real estate sale-leaseback firm to provide funding.  The selected firm had experience in the industry and was able to close on the owner's accelerated timeframe. 

Transaction Benefits

• Allowed the Company to nearly triple revenue in 18 months.
• No dilution of equity ownership.
• Closed the transaction in 120 days.
• Generated flexibility for owner in terms of future growth from its debt provider.
• Helped negotiate succession plan with second tier management team.