LSQ Provides $5MM A/R Finance Facility to Plastics Recycler

LSQ originated a $5 million credit facility for an automotive parts producer. The manufacturer had been struggling to meet its obligations to its suppliers and had to find additional liquidity.

“We are excited to be able to step in and fill a much-needed cash-flow gap for a company that found itself in an unfortunate situation with its suppliers and its current lending relationships,” DJ Krystopa, regional vice president at LSQ, said. “With the boost in working capital, we are sure their fortunes are turning around and they can work through the issues, keep people employed and continue production.”

According to the LSQ underwriting team, the deal was made possible by working with a variety of stakeholders, including the company’s existing bank and its largest supplier.

“As we moved through the specifics of the working capital need, it was clear certain obligations with the existing lender and the supplier had to be addressed,” Tom Fevola, director of underwriting at LSQ, said. “Everyone had a vested interest in the business relationships that had been built, so we were able to come to a solution that served the needs of our new client, their suppliers and their existing lenders.”

“This deal is indicative of the types of situations we are seeing more and more of in the market,” Mike Singer, senior vice president of underwriting at LSQ, said. “Companies are finding themselves in situations where liquidity is stretched and traditional lenders don’t have the appetite to support their needs. I’m glad we could work with this group to help them position themselves to weather the current environment and capture growth opportunities in the future.”