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Rosenthal Closes Three Asset-Based Lending Transactions

October 03, 2023, 08:00 AM

Rosenthal & Rosenthal completed three asset based lending transactions across multiple industries.  
A well-known national sleepwear and novelty giftware manufacturer and distributor of branded, proprietary specialty gifts based in the Northeast was seeking an alternative financing solution after its existing bank lender was no longer willing to support its seasonal needs. The company needed to secure financing quickly, as its busiest season was approaching, and sales volume through major online retailer channels was expected to increase significantly. With Rosenthal’s deep experience working with direct-to-consumer businesses, the firm was well positioned to quickly step in to provide a $10 million asset based loan to support the company’s seasonal needs, in time before the peak holiday season.
"The client was drawn to Rosenthal because they recognized our experience working with direct-to-consumer businesses and our understanding that speed and flexibility are critical to meet seasonal demand,” said Tony Vassallo, Senior Vice President of Business Development at Rosenthal.
A New Jersey-based family-owned company operating in the foil and hot stamping manufacturing industry was in need of additional liquidity to support their working capital needs, when the client’s current lender was unwilling to lend against their inventory or foreign accounts receivable. Working in tandem with a third-party insurance partner, the client was able to manage and obtain a foreign credit insurance policy, enabling Rosenthal to provide a $4 million asset based revolver, which unlocked almost $2.5 million of additional availability.
“Rosenthal often collaborates with third-party partners, as we did in this transaction, which allows us to move quickly so we can provide the working capital that clients need to keep their businesses running smoothly,” said Robert Martucci, Rosenthal’s National Sales & Underwriting Manager for Asset Based Lending.   
A Georgia-based family-run wholesale distributor of unique, design-focused decorative pots, containers and vases serving the event planning and décor sectors was experiencing declining revenue in certain segments of its business stemming from COVID-related supply chain challenges. With both commercial and retail e-commerce generated revenues, the company had previously been financed under a non-ABL structured bank loan and the bank was looking to exit, even though the company had already demonstrated a turnaround. Rosenthal was able to provide a $6 million revolving line of credit primarily secured by all assets of the company, with a carve out for a small amount of existing term debt.
“Rosenthal’s willingness to establish a multi-tiered advance structure against inventory, coupled with the fact that our local Southeast team would be handling the relationship, made all the difference in this transaction,” said Gene Walsh, Senior Vice President and Business Development Officer at Rosenthal.

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