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Funding Expansion and New Plant Acquisition to Fan Growth

 

Situation 1:
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.

Our solution:
Veritas was able to accommodate their cyclical need for inventory build and provided a $16 million asset based revolver and term loan credit facility.


Situation 2:
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.

Our solution:
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.

Result:
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.

VERITAS Advantages:

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“Last spring Veritas moved quickly and refinanced CAM’s bank facility. We were able to provide maximum availability against finished goods inventory and other assets and the resulting cash flow enabled them to move forward. At the time, we felt this would be a successful partnership and CAM proved us right. Within six months they had a prospect for further growth, and by scaling with them Veritas helped them seize the opportunity.”
— Evan Nadler, Senior Vice President - Business Development, Veritas Financial Partners
“Our business has fluctuating revenue levels throughout the year mirroring the varied demand for our products. This situation creates erratic cash flow scenarios that present challenges as opportunities present themselves. Veritas’ thoughtful approach to financing and their faith in our business has enabled us to exploit these with quick response funding for important acquisitions that ensure our continued growth.”
— Mark Hermann, CEO, CAM

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.

Evan Nadler
Senior Vice President
(312) 809-0757
enadler@vfpfinancial.com
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Mark Seigel
President
(561) 405-4008
mseigel@vfpfinancial.com
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David Bueno
Vice President
(215) 717-7259
dbueno@vfpfinancial.com
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Tony Liobis
Vice Chairman & Chief Credit Officer
(561) 405-4003
aliobis@vfpfinancial.com
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