Rosenthal Closes $7.5MM ABL with Midwest Food Distributor

Rosenthal & Rosenthal completed a $7.5 million revolving credit facility to support the working capital needs of a Midwest-based food distributor serving restaurants along the East Coast.

The food distribution company had an existing relationship with a community bank spanning the last 10 years. The bank was facing limitations on its lending given the shrinking credit market and was unable to continue providing the company with sufficient working capital. The company’s advisor, Keith Carlson, shareholder and managing director of VonLehman CPA & Advisory Firm, introduced the company’s executives to Al Foster, vice president and business development officer in Rosenthal’s Atlanta office. By leveraging the company’s inventory to support the multi-million-dollar revolver facility, Rosenthal provided more working capital than the company’s bank offered.

“Right off the bat, the Rosenthal team rolled up their sleeves and were willing to put in the time and energy to learn about the transaction and spend time with management to understand their needs and come up with a creative solution,” Carlson said. “Rosenthal’s ability to execute quickly and provide a flexible lending solution — especially in the middle of a global pandemic — was key to this successful transaction. It would have been easy to just cut bait and run, but Rosenthal never did that. They kept coming back with what they were willing to do in light of the circumstances. Those are rare attributes in a lender.”

“Without the expert guidance of VonLehman, this transaction might never have happened. By taking the time to learn about and understand the companies we lend to, we’re able to earn their trust,” Foster said. “Rosenthal is family-owned and independent, which means we aren’t limited by red tape and regulations that often prevent other institutions from offering clients the funding they need. On this transaction, our flexible inventory-only structure enhanced the company’s liquidity and will allow them to continue to grow their business.”