Fast and flexible is the hallmark of a successful financing relationship. Tailoring loan terms to match the specific needs of a complex business model and capital structure, coupled with the closing of that loan in a timely manner, is what makes the right financing partner stand out.
Gibraltar recently delivered in this way for Amware Fulfillment, a third-party logistics provider that specializes in scalable solutions for companies with high-volume fulfillment needs. A change in relationship at its current lender triggered the company and its financial sponsor, Rotunda Capital Partners, to reach out to Gibraltar for fast and flexible working capital. The company was also looking to move quickly to take advantage of a large new contract it had secured.
Amware serves high volume, direct-to-consumer and ecommerce businesses that serve several diverse markets including health and beauty, retail, and consumer products. Amware must move swiftly as the company is known for providing 1–2-day ground delivery to 95% of the U.S.
GBC Provides Quick Close on Loan with Complex Capital Structure
GBC was able to close on the loan in 43 days, despite a complex capital structure that involved multiple parties. This swift approval and closing process involved securing a credit committee approval within three weeks of letter of intent signing.
While a financing relationship change caused the private equity group to seek a new partner, GBC was able to smoothly provide greater flexibility, quicker. This included providing the $10MM asset based loan with higher advances against accounts receivable than conventional rates and without requiring credit insurance on a group of foreign receivables. GBC also provided financial covenants that included testing flexibility.
“Gibraltar’s team committed to an efficient closing timeline amidst complex circumstances — while simultaneously introducing us to GBC’s senior credit committee members,” said Duncan Thomas, CFO of Amware. “The process was swift, flexible to our highly specific needs, and was well aligned with our financial sponsor’s requirements.”
