Interior Design Center
$2,500,000 Line of Credit
A provider of outsourced interior design centers and installation services for homebuilders was seeking a financial partner with industry expertise and capital to help grow the business and increase profitability. An investment banker was engaged to assist the company in finding the right partner. A financial sponsor was chosen with relevant industry experience and prior success in growing a business in this market segment. The equity sponsor provided $800,000 in preferred equity and a mezzanine lender provided $3,200,000 in junior capital. The company had a tangible net worth of $5,000,000 at the closing of the transaction and had breakeven results on revenue of $40,000,000 for the most recent fiscal year. Due to industry concerns, their existing bank was not interested in financing the company.
First Community Financial provided a $2,500,000 revolving line of credit to repay the existing bank and support the company’s ongoing working capital needs. First Community was chosen as a result of its industry experience and was the only lender that the investor group approached.
