Vehicle Parts Manufacturer

Midwest/West Coast
Investment Amount: $5,400,000
Investment Date: August, 2018


A manufacturer and their PE sponsor approached CapX about financing new capex for its foreign subsidiaries. The assets foreign location usually results in a missed opportunity. However, CapX and the Company worked on freeing up enough machinery and equipment in the U.S. from the senior secured lender (more cash flow underwritten and collateral was not a condition of credit) to advance capital. CapX executed a sale leaseback on the specific released assets with a valuation acceptable to all parties. The result was the company was able to invest meaningful amounts of new equipment into its China and Brazil locations without disturbing its senior credit relationship, helping the Company create more revenue and EBITDA.