Representative Transactions Francisco has originated, underwritten, or placed.
Ethnic Food Store and Restaurant
$1.2 million Mortgage Term Loan
A Midwest-based chain of ethnic food stores and restaurants was beginning to consider alternative financing for their properties following violent riots which damaged their stores and neighborhoods. Their incumbent lender, moreover, decided to move in a different direction, as Covid changed the populations eating-out habits. The bank referred Francisco in to solve their change of heart. After assessing the situation, Francisco approached 18 lenders in the region with confidential summaries and provided detailed info to 5 interested parties, 4 of which provided very competitive proposals. The borrowers closed with the bankers they felt most comfortable with.
The company owner appreciated the guidance in sourcing competitive proposals in difficult circumstances. The incumbent bank couldn’t be happier with the opportunity to realign their portfolio. And the new bank has a new long term customer who will grow with them for the long term.
Building Products Manufacturer
$2 million Term Loan
An Illinois-based building products company felt like they had clay feet following several years of losses as their existing lender refused to provide additional loans to fund their turnaround trend. After approaching 20 lenders, Francisco arranged a Business Banking term loan to refinance the existing lender and provide funds for an owner buyout and additional machinery. The credit facility was underwritten by a Midwest-based commercial bank which provided the most availability, longest term, and reasonable pricing among lenders in the region. Francisco stated that the bank exhibited the most flexibility, professionalism, and responsiveness to the company’s needs. Per the company’s President: “Francisco obtained a great result for our company and I am 100% positive that I will use them again as we may need additional capital to grow our business.”
The incumbent bank also expressed gratitude for Francisco’s effort in refinancing a credit which no longer suited their portfolio criteria.
Branded Bicycle Manufacturer and Marketer
$25 million Revolver and Term Loan
A Michigan based private equity group was attempting to purchase a US-based manufacturer and marketer of bicycles. Francisco arranged for an asset based lender along with another bank to extend a $25mm facility with a significant overadvance against collateral. The overadvance was possible in the face of stagnant cashflow based on the appraised value of the intangible brand name. 6 months later the lenders increased the facility to $50mm to allow for the acquisition of a Chinese bicycle manufacturer. Another overadvance was facilitated based on the synergies that the acquisition allowed. A related $7mm facility was arranged by Francisco for one of the company’s retailer customers to factor the bicycle manufacturer’s receivables. This allowed the client to take the training wheels off and increase their sales significantly, further leveraging the acquisition.
Metal Fabricator
$40 million Working Capital Revolver
This Iowa based copper fabricator was owned by a Korean company and was being pressured by their commercial bank. The lender was extending unsecured credit and was becoming uncomfortable with the credit as a result of falling copper prices, a faltering Korean economy which put the parent guaranty into question, and two years of losses. Francisco addressed the problem by arranging a $40mm revolver through a New York based lender. The fully secured revolver was significantly exposed to the price of copper on the inventory part of the credit and required close monitoring. The incumbent lenders received every copper penny owed them, including interest.
Auto Parts Supplier
$10 million Term Loan
Another Michigan based private equity group was attempting to close an acquisition of an auto parts stamper in Ohio, creating a large integrated supplier of automotive exhaust systems. While they had no trouble sourcing financing for the working capital portion of the deal, they were coming up short on the term loan component. (One can say they were near exhaustion.) Francisco referred this opportunity to a New York based equipment lender who stepped up for a $10mm share of the credit, allowing the acquisition to go forward. This was a combination equipment and cashflow loan and was based on the lender’s familiarity with the auto business.
Interstate Trucking Company
$14 million Working Capital Revolver and Equipment Term Loan
This Utah based interstate trucking company was being threatened with liquidation by their existing lender due to 3 years of losses. Francisco structured a 3 year credit facility to haul it out of the lender’s workout portfolio and give the company a new lease on life. The facility was fully secured by receivables and the liquidation value of the trucks and the lender got their loan repaid in full.
Retailer of Women’s Apparel
$10 million Working Capital Revolver
This St. Louis retailer was going through a cyclical and seasonal rough patch as it racked up losses for 2 years in a row. Its banks weren’t amused by their turn in fashion and referred in Francisco who arranged for a $10mm working capital line which took the bank out whole and gave the company a three year facility to fight another season. The facility was secured by store inventory and was based on a specialty appraiser’s valuation and required close monitoring of the collateral.
Manufacturer of Consumer Goods
$3 million Purchase Order Financing Facility
This Midwestern client had an exceptional opportunity to do business with a major retailer. The company received an extremely large order, well beyond its expectations, and production capabilities. To complete the order, the company needed to find an alternative source of product to supplement its production capacity, which would require additional financing. An offshore manufacturer, able to provide product at the desired price points was found, but insisted upon letters of credit, which required additional capital. While additional equity was an option, the client didn’t want to dilute ownership. The existing bank agreed to a higher line limit to accommodate the increased receivable levels, but refused to finance the increased inventory requirement. Our funding partner was brought in and structured a $3mm purchase order facility, secured by the purchase orders and inventory, resulting in 100% of inventory financing. The additional capital, made available through purchase order financing allowed the client to obtain the necessary inventory, and increase sales and profits, while retaining a valuable customer.
Distributor of Electronic Appliances
$5 million Purchase Order Financing Facility
A successful distributor found itself losing money. Significant growth over the past two years resulted in over expansion, operating problems, and a deterioration in the company’s relationship with its lender. Losses required even more financing at a time when the company was entering its peak sales season and on the verge of profitability. Large purchase orders had been received from its present and expanding customer base. Additional financing was urgently needed to acquire inventory to satisfy the purchase orders, but the bank’s aggressive program could no longer be justified due to the previous losses. Instead of a turn down, the bank agreed to continue with its original working capital line, secured by inventory and receivables. Our funding partner provided purchase order financing, the proceeds of which enabled three successive $5mm purchases, enabling the company to increase sales, and return to profitability.
Steel Fabricator and Service Center
$3 million Working Capital Line of Credit
An Illinois-based steel fabricator was going through a cyclical downturn and their Chicago bank was recoiling from extending their line of credit. After 18 months of losses, the credit was transferred to workout and Francisco was referred in to prove his metal. He structured a working capital facility through an asset based lender to take the bank out whole, allowing the company to contract its balance sheet and weather the downturn. Two years later they moved into a 150,000 state of the art facility and expanded their services.