Refinancing a family-owned manufacturer

Rebuilt the capital structure of a third-generation manufacturer facing a covenant breach and a tightening credit market.

Context

Rising rates had pushed leverage past lender comfort ahead of a major investment programme.

Key outcomes

Covenants reset with existing lenders

New term facility on better terms

Investment programme kept on track

Discuss a similar mandate

The situation

A third-generation manufacturer was heading for a covenant breach just as it committed to a multi-year investment in new production lines.

Our approach

We rebuilt the forecast from the ground up, opened early conversations with existing lenders and ran a parallel process for new term debt to create real options.

The result

Covenants were reset, a new facility closed on better terms than the original, and the investment programme stayed on schedule.