"FocalPoint ran an efficient and multi-pronged process that resulted in numerous interesting options, providing us with the capital we need to continue executing our growth strategy."
Leon Farahnik, Chairman and CEO, CarbonLITE
Transaction
The Company approached FocalPoint to help refinance its existing debt, raise minority equity to facilitate the build-out of its new Pennsylvania facility, as well as to pay down shareholder notes.
Deal Challenges
CarbonLITE had outgrown its existing lenders and was looking for capital to help fund its continued growth. Additionally, the Company had customer concentration with its large customers (national beverage companies). CarbonLITE's Texas facility was experiencing a slower-than-expected ramp-up in 2018 and 2019, impacting investor perception of the new Pennsylvania facility ramp-up in connection with the Company's budget.
Solution
FocalPoint ran an expedited dual-track process where both lenders and potential equity investors were introduced to the Company and the transaction. By maintaining strict deadlines and providing detailed marketing materials that clearly outlined the investment opportunity, FocalPoint was able to generate significant interest from lenders as well as equity investors.
By outlining the Company's strengths and clearly articulating the CarbonLITE story, FocalPoint was able to mitigate lender and investor concerns surrounding the industry and the customers, and focus the attention on the Company's unique position in the market as a first mover and one of the only suppliers of high quality PCR PET.
FocalPoint analyzed the impact of several different transaction options and worked with the Company, Management and its Board of Directors to narrow down the field. The Company ultimately decided to move forward with a lender that provided a creative solution that met all of CarbonLITE's near-term goals, as well as additional capital for growth.