Building Material Distributor

Company Overview

The Company is a distributor of commercial building materials in the Midwest and Southeastern United States. Major product lines include acoustical ceilings and walls, drywall, metal studs, insulation and exterior insulating finish systems.  As a result of the recession, the Company’s revenues and profitability declined.

Engagement Overview

The Company retained Fort Dearborn to lead its refinancing efforts including:

  • Assisting with preparation of a detailed information packet
  • Marketing the credit to several pre-screened lenders that understand the Company’s industry and it’s financing needs
  • Assisting during the extensive due diligence process and negotiation of terms
  • Facilitating the process from inception through completion.

With Fort Dearborn’s guidance, the Company was able to secure a new line of credit and term loan facility that immediately increased liquidity by  $3 million and reduced debt service by almost $1 million annually, allowing the Company to execute its business plan and ultimately grow the business.

Fort Dearborn’s familiarity with individual lenders and the credit markets enabled the Company to focus its efforts on only those lenders that had an affinity for their industry, which generated meaningful competition and allowed the transaction to be completed timely and on favorable terms.

With Fort Dearborn’s assistance, the Company developed and implemented a plan that allowed the Company to:
  • Pay down debt and return to sustainable profitability
  • Secure a new $12 million credit facility which provides $3 million of additional liquidity to facilitate growth, and
  • Negotiate a favorable financing structure that reduced principal and interest payments by more than $1 million annually.
Fort Dearborn’s industry expertise and extensive knowledge of the credit markets enabled the refinancing transaction to be completed timely and on favorable terms.