Industry/Sector: Automotive accessories manufacturing
Deal Type: Debt Financing
FourBridges Team: Andy Stockett, Chris Rowe
Client Profile: Headquartered in Ooltewah, Tenn., the Company designs and manufactures automotive floormats and other licensed automotive accessories for retailers and original equipment manufacturers (OEMs). In addition to its Remington-brand products, the Company sells products under its licenses, which include Michelin, Rubbermaid, Stanley and the U.S. Army. Since its establishment in 1983, the Company has built relationships with key customers such as Wal-Mart, Costco, Canadian Tire and Toyota Canada.
Client Objectives: The Company wanted to take advantage of emerging opportunities in the marketplace. To do so, the Company planned to proactively expand new product offerings to its existing customer base; introduce its complete product offering through new channels; and decrease customer concentration by increasing its customer base. A credit facility would allow the Company to put these new initiatives into action.
The Process: FourBridges collaborated with the Company’s management team to build a three-year forecast and an analysis of the asset base. FourBridges then identified 20 potential lenders across the country that had the capacity to provide an appropriate facility. Ten term sheets were received, and FourBridges analyzed the offers, comparing interest rates, audit fees, borrowing capacity, advance rates, unused line fees, borrowing base eligibility and financial covenants. Following this analysis, three potential lenders were invited to visit the Company. They were introduced to the Company’s management team, and an additional round of due diligence was conducted. From these finalists, the Company selected the ultimate lender, and FourBridges negotiated a final term sheet that acted as the basis for securing the loan.
The Result: The broad process conducted by FourBridges connected Remington to a range of traditional FDIC banks, finance companies and other sources of capital. Utilizing FourBridges allowed the Company to find a lender that was not previously considered but is an ideal fit for the Company’s needs and objectives. Remington now has a facility that will allow it to execute its business plan. When appropriate, the Company also has the ability to expand the facility with minimal expense.
FourBridges Capital Advisors is a middle market investment bank providing sell-side, buy-side, capital raising, restructuring, and strategic advisory services primarily to closely-held and family-owned businesses. FourBridges is based in Chattanooga, Tennessee, and serves clients in cities across the Southeast, including Atlanta, Nashville, Birmingham, Memphis, Knoxville and Huntsville.