Bag Manufacturer

Investment Amount: $5,500,000
Investment Date: September, 2018


Within two years of running a platform and add-on bag manufacturing business, the sponsor faced operating headwinds creating lower than plan EBITDA. After first shoring up the balance sheet (by re-capitalizing parts of its leverage), the sponsor looked to materially invest in the platform’s printing and bag making technologies to more effectively deliver and enhance profitability.  

CapX provided a $5.5M lease line of credit to facilitate the procurement of equipment, outside of the company’s senior bank facility, and will lease the new machine assets to the company over a 5-year term. This new financing helped the company preserve its senior bank relationship while obtaining the equipment required for their turnaround plan.