cnc machine shop

The Situation

The company became subject to a court-ordered buyout of a significant shareholder and family member. To resolve protracted litigation, this well-run but cyclical business with limited borrowing history sought Teneca’s assistance to access the funding required to fulfill the redemption obligations.

The Transaction

With our long history and relationships with local and national lenders, we were able to access diverse financing sources with varied approaches to find the best fit for the client. We created strong interest among a group of prospective lenders, negotiating a package with a lender that provided $23 million of credit facilities.

The Result

Our financing package allowed the company to meet the terms of the court order and also obtain funding to finance future growth. Teneca negotiated attractive rates, minimal covenants, no guarantees or stock pledge and no pledge of real estate.