THE CHALLENGE

• ‍‍The Company was experiencing rapid growth across North America and the UK
• Despite their momentum and strong financial performance, their schedule A bank failed to provide suitable credit solutions for their new facility openings and was unresponsive to the Company’s requests for additional funding
• In addition to funding its expansion plans, the Company also sought financing to buy out a minority shareholder
• To address these challenges, the Company engaged Valitas to arrange a more flexible financing solution that would enable them to buy out its minority shareholder and provide ample financing for its ongoing expansion plans

VALITAS' SOLUTION

• ‍‍Valitas prepared world-class marketing materials and canvassed over 20 potential lenders to maximize competitive tension and secure the best possible terms
• Built a robust monthly credit model with a bottom-up forecast of the Company’s performance to assess its financing needs to 2029 and structure covenants to allow for greatest flexibility
• Arranged a financing commitment that was 3x greater than their prior credit facility, enabling Lean Supply to buy out the minority shareholder and fund its aggressive expansion plans for the next five years
• Secured a cost-effective financing solution that reduced the weighted average cost of capital (WACC) by 4%, with minimal impact on overall financing costs

THE OUTCOME

Valitas arranged financing for Lean Supply that exceeded its prior financing commitment by 224% and ensured ample underdrawn credit and covenant headroom for the foreseeable future.

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