Rosenthal Closes Trio of Recent Asset-Based Lending Transactions

Rosenthal & Rosenthal completed three asset-based lending transactions across multiple industries.

The first transaction was with a sleepwear and novelty giftware manufacturer and distributor of branded, proprietary specialty gifts based in the Northeast that was seeking an alternative financing solution after its existing bank lender stopped supporting its seasonal needs. The company needed to secure financing quickly, as its busiest season was approaching and sales volume through major online retailer channels was expected to increase significantly. Rosenthal quickly stepped in to provide a $10 million asset-based loan to support the company’s seasonal needs before the peak holiday season.

“The client was drawn to Rosenthal because they recognized our experience working with direct-to-consumer businesses and our understanding that speed and flexibility are critical to meet seasonal demand,” Tony Vassallo, senior vice president of business development at Rosenthal, said.

The second transaction was with a New Jersey-based, family-owned company operating in the foil and hot stamping manufacturing industry that needed additional liquidity to support its working capital needs when its current lender was unwilling to lend against its inventory or foreign accounts receivable. The client was able to manage and obtain a foreign credit insurance policy by working in tandem with a third-party insurance partner, which enabled Rosenthal to provide a $4 million asset-based revolver, which unlocked almost $2.5 million of additional availability.

“Rosenthal often collaborates with third-party partners, as we did in this transaction, which allows us to move quickly so we can provide the working capital that clients need to keep their businesses running smoothly,” Robert Martucci, national sales and underwriting manager for asset-based lending at Rosenthal, said.

The third transaction was with a Georgia-based, family-run wholesale distributor of decorative pots, containers and vases serving the event planning and décor sectors that was experiencing declining revenue in certain segments of its business stemming from COVID-related supply chain challenges. With both commercial and retail e-commerce generated revenues, the company had previously been financed under a non-ABL structured bank loan, but the bank was looking to exit, even though the company had already demonstrated a turnaround. Rosenthal was able to provide a $6 million revolving line of credit primarily secured by all assets of the company, with a carve-out for a small amount of existing term debt.

“Rosenthal’s willingness to establish a multi-tiered advance structure against inventory, coupled with the fact that our local Southeast team would be handling the relationship, made all the difference in this transaction,” Gene Walsh, senior vice president and business development officer at Rosenthal, said.