The Company began operating in 2001 and experienced significant growth through the provision of both systems integration and professional services to customers across the Southeastern United States.
However, two natural disasters in 2017 significantly altered the trajectory of the Company. Firstly, Hurricane Harvey devastated the Company’s primary supplier assembly facilitiy in Texas, causing a litany of problems that were largely beyond the immediate control of management. Shortly afterwards, Hurricane Maria swept through Puerto Rico and handicapped the supplier’s global logistics facility.
The Company worked quickly to identify and utilize alternative supply sources, but the integration of such systems in a time efficient manner proved to be a challenging effort. At that time, the Company utilized a $6M line of credit from the incumbent bank. After the events in the second half of 2017, the bank became increasingly uncomfortable with the existing arrangement and requested to exit the facility.
GGG was retained in order to develop a comprehensive strategy to move the Company forward with new lines of credit. GGG worked diligently to produce a compelling financing memorandum that highlighted the key attributes of the Company to prospective lenders. GGG further managed the distribution of such information to targeted lenders, whilst also capitalizing on relationships with existing lenders.
GGG successfully recapitalized the Company with a lender that was more understanding of the complex situation that the Company found itself in. The new revolving facility provided an $18m line of credit with more favorable terms. Crucially, this loan eliminated supplier constraints during peak seasons and provides significant funding for future growth. Company Management now have both the resources and commitments necessary to achieve its corporate objectives.