Funding Expansion and New Plant Acquisition to Fan Growth
Chicago American Manufacturing (CAM) designs, engineers and manufactures primarily consumer and commercial fans, selling through home improvement, convenience, food and drug stores as well as to the government. They faced seasonal challenges that stressed cash flow, such as pre-season inventory purchases. Their current bank lender could not provide maximum availability against finished goods and foreign accounts receivable.
Veritas was able to accommodate their cyclical need for inventory build and provided a $16 million asset based revolver and term loan credit facility.
In December 2018, CAM had an opportunity to acquire a state-of-the-art manufacturing facility to support continued growth. Their bank provided a mortgage, but it was not large enough to complete the purchase.
Moving quickly to seize the opportunity, Veritas filled the gap and increased CAM’s credit facility to $17.5 million against assets to give them the funds they needed.
CAM was able to take a giant step into the future, with both the liquidity necessary to run operations smoothly and the new real estate they needed to grow. They have also been able to start a new product line of utility carts which are not subject to the same seasonality.
About Veritas Financial Partners
Veritas Financial Partners is a specialty finance firm that provides $2 – $20 million senior secured credit solutions to businesses across various industries. Veritas serves entrepreneurs, management teams and private equity sponsors by delivering the flexible, responsive capital needed to achieve their goals. As an affiliate of an investment fund with $2.5 billion in assets under management, Veritas benefits from a substantial long-term capital base.