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A proven ability to provide quick and value-added results.

Partner with Ohana Capital.

2011 transactions

Industry:

Service – environmental & engineering services

Context:

  • In business since 2004, this company has built an increasing & loyal customer base.
  • Provides expertise in all aspects of property condition & environmental impact assessments to building owners, lenders and regulatory authorities.
  • Client is expanding its operations and has decided to double the size of their rental premises. As well, total office renovation & upgrade is underway.
  • History of profitability has enabled company to self-finance itself to date.

Financing obtained:

  • First ever line of credit in support of the increasing amount of accounts receivables.
  • Term facility («SBL» – Small Business Loan Program) obtained to finance the renovations & equipment purchases.
  • Working capital loan secured to support the expected continued sales increase.

Industry:

Retail – chain of retail stores (shoe & clothing)

Context:

  • Since the opening of the first store in 1993, company has now expanded to 6 locations with 2 additional openings expected in the next 12-18 months.
  • Carries well known brands, including: Rudsak, Mackage, Lacoste, Michael Kors, UGG, Levi’s and BCBG.
  • The three (3) new stores opened since 2009 have required important leasehold improvements and these have been paid mainly out of the company’s cash flow.
  • Furthermore, higher inventory levels and greater sales must be supported.

Financing obtained:

  • Line of credit in an amount +75% greater allowing for stronger cash flow year round.
  • Refinancing of the existing four (4) long term loans at higher «loan-to-values» and better pricing.
  • Working capital loan, from a government lender, providing the required additional support.

Industry:

Designer & manufacturer – various lighting products

Context:

  • Manufacturer for over 30 years of recessed lighting, pendant & wall lamps, ceiling fixtures, track lighting and spots.
  • Sells to more than 500 well known renovation department stores in Canada, USA & Mexico.
  • Company has a signed purchase offer on a property that would become owner-occupied.
  • Client looking to benefit from available government grants for such investment projects.
  • Ohana Capital was mandated by the client’s chartered bank in order to source the available grants for their client.

Grant obtained:

  • Non-refundable government grant in the amount of $250,000 secured & allowing the chartered bank to solidify the relationship with their client. At the same time, the bank was able to finance the purchase of the property.

Industry:

Retail – used car dealership

Context:

  • In business since 2009, sales are growing at a rapid paste and the fleet size has reached 70 cars.
  • The shareholder’s initial capital injection and profits generated to date have allowed dealership to be self-financing up until now.

Financing obtained:

  • First ever line of credit providing the extra working capital needed.

Industry:

Designer & manufacturer – premium / designer denim («ExistCo»)

Context:

  • Very successful company experiencing explosive sales growth in the last year.
  • Founded in 2000 & sells to well-known retailers, including: Reitmans, Holt Renfrew, Roots, RW&CO, Addition Elle & Stylexchange.
  • Raw material is imported from a number of suppliers globally with the manufacturing outsourced to local sub-contractors.
  • Company has developed proprietary products that are sold to retailers across Canada, USA, Europe & Asia.
  • An important expansion project is in the works and client’s products are gaining more and more popularity.

Financing obtained:

  • Line of credit five (5) times more important than the one currently extended by the client’s bank.
  • Loan guarantee, in favor of the new lender, obtained by a Canadian government agency facilitating the financing.

Industry:

Manufacturer (start-up) – premium / designer denim («NewCo»)

Context:

  • Founded by the existing successful business referred in the above slide. (ExistCo)
  • ExistCo’s main production contractor has recently decided to close shop which leaves ExistCo without critical cutting & sewing capabilities.
  • NewCo will become the manufacturing arm of theExistCo, thus, eliminating any limitations & risks associated with outsourcing its production.
  • This expansion project requires an important CAPEX (Capital Expenditure) program.

Financing & Grant obtained:

  • Line of credit financing the day to day operations.
  • Term facility enabling the purchase of machinery & equipment to set-up the plant as well as to complete the leasehold improvements.
  • Term facility permitting the purchase of the manufacturing facility.
  • Loan guarantee obtained by a government partner facilitating the transaction.
  • Non-refundable government grant of $200,000.

Industry:

Service – commercial dry cleaner

Context:

  • In business since 2007, company recently moved to new & larger premises.
  • Client base comprised mainly of hotels, motels, restaurants, dining halls, convention & exhibition halls.
  • Un-financed CAPEX related to the move is putting pressure on the company’s cash flow.
Financing obtained:
  • Bridge loan from a private lender alleviating pressure off the client’s cash flow.

Industry:

Manufacturer – plastic trays & containers

Context:

  • Founded in the 1970’s and serves the Canadian food manufacturing sector. (Frozen food, baked goods & salads)
  • US plant opened in the last few years has yet to produce positive results.
  • A restructuring plan has been put in place and positive results are expected in 2012.
  • Owner examining various alternatives in order to rectify the situation.

Consulting mandate:

  • Analyzed the company’s current financing arrangements with various Canadian & US lending institutions.
  • Recommended various financing alternatives that would provide additional funds pending positive results from the restructuring plan.
  • Negotiated and presented various term sheets from conventional (chartered banks) and alternative (Asset-based-lenders) lenders.

Industry:

Service – construction related business

Context:

  • Services offered include demolition, decontamination, asbestos removal & mold cleaning.
  • Client base includes general contractors, government agencies, hospitals and many «McDonald’s» restaurants.
  • Continued sales growth and new important government contract recently signed with «Correctional Services Canada».

Financing obtained:

  • Operating line of credit, including: Amount +50% greater than the existing line of credit, better pricing and more aggressive borrowing power on the A/R.
  • Two (2) term facilities, from different non-bank lenders, providing the required extra working capital to support the expected continued sales growth.

Industry:

Service – marketing agency
 

Context:

  • Since 2006, this company offers retail, experiential and permission marketing services.
  • With offices in Quebec & Ontario, this business has an impressive client list comprised of large / well know corporations including: National Bank of Canada, Labatt, Sleeman, Merck, Bell Canada, Kruger, Danone, Bacardi & Hydro Quebec.
  • With certain clients taking over 120 days to pay, the current line of credit doesn’t provide the required borrowing power for this growing business.

Financing obtained:

  • Line of credit in an amount +40% greater with more aggressive margining conditions on the A/R. (90% margining for A/R up to 180 days) – Insurance policy on the A/R obtained, thus facilitating this more aggressive borrowing base.
  • New term loan used to refinance the existing three (3)term facilities at better terms & conditions.
  • Factoring line of credit from a conventional lender providing further cash flow support if needed.

Industry:

Manufacturer & distributor – landscaping products, bricks, stones & pavers

Context:

  • Business acquisition transaction.
  • Established since the 1960’s, this successful group of companies is looking make another acquisition that would solidify and increase their product offering & market share.
  • The buyer is under a very tight deadline to complete the purchase and a quick financing solution is needed.

Financing obtained:

  • Bridge loan from a private lender permitting the transaction to proceed to the «closing» phase.

Industry:

Retail – used car dealership & full service garage

Context:

  • Founded over 40 years ago, this company is one of the most important player in the used car market in the Montreal area.
  • The garage division provides upkeep and repair of vehicles, beauty care, body and parts sales.
  • Substantial losses in 2007 & 2008 and historical unfinanced CAPEX, have weakened the financial ratios of the company.
  • However, continued sales growth is in place and profits are back.

Financing obtained:

  • Term loan refinancing the existing equipment & providing the extra working capital required to maintain a good cash flow year round.
  • Operating line of credit in replacement of the one currently in place.