Concord Financial Advisors, LLC has acted as exclusive financial advisor in a $3 million senior secured credit facility, consisting of a revolving line of credit, for a freight forwarder in Chicago. The proceeds were used to refinance existing debt and provide working capital.
This service provider was in the special assets division of its bank with a tight timeline to exit due to net losses in 2008 and ongoing turnaround in 2009. The company was considering an expensive factoring arrangement as a backup, but preferred a more traditional structure to keep customer relationships and collections in-house. Concord quickly identified two private finance companies and secured two competitive proposals that met the company's requirements. The transaction was closed within 90 days to the satisfaction of all parties involved.
"Concord quickly identified the appropriate lenders for our transaction given the current tight credit market. We saved a tremendous amount of money versus the proposed factoring transaction," said Ed Pawelko, CFO of concord.
Concord Financial Advisors also advised a mobile high-definition television broadcaster on a restructuring of the company's debt. The company also required new capital expenditure financing to meet customer demand, grow its business and increase shareholder value.
Concord developed a restructuring plan that included reduction of debt service, extension of certain debt maturities and permitted new debt to finance expansion of the business.
The transaction closed to the satisfaction of all parties and allowed the company to finance its expansion, maximizing value for both lenders and investors.
Concord Financial Advisors assists middle-market companies with their financing needs including senior and subordinated debt, private equity, acquisition financing, leasing and factoring.
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