- Lay the groundwork for future growth
- Leverage existing assets to minimize financing costs
A producer of high-end building supply products wanted to expand their reach, both geographically, and vertically. They identified an opportunity that would enable them to expand into another, much larger market, while also developing their service & installation expertise. The synergies were significant, and the opportunity would diversify their revenue stream, provide access to new markets and cement existing relationships.
How Roynat Capital helped
Roynat structured a big-picture solution that looked at the company's immediate needs, as well as their long-term success. Cash flow and the balance sheet were improved by a total debt consolidation and as the financing was partially secured by fixed assets, the cost of financing was minimized. Working capital was freed up to enable the company to focus on growth, and a portion of the loan was funded in US Dollars to serve as a natural hedge for their USD sales.