The Situation

ARCA’s primary growth initiative involved a contract with a major manufacturer and logistics provider who chose ARCA to launch the start of a national recycling operation. This opportunity necessitated capital to establish the first of multiple recycling centers that entailed the purchase of highly specialized equipment new to the U.S. market. A full recapitalization of ARCA became necessary in order to address its overall strategy.

The Transaction

Understanding the combination of collateral values and the significance of the new recycle center launch, we helped refine the Company’s strategy and marketed the opportunity to lenders who were able to see past the company’s losses in its retail division. We arranged $25 million of financing in various components for the company and its affiliated joint venture, ARCA Advanced Processing.

The Result

Refinancing existing debt with more favorable terms and increased availability enhanced the company’s financial flexibility and saved over $500 thousand per year in interest expense and fees.