Securing a $185M Credit Facility
Amid Liquidity Constraints
industry
Automotive Supplier & Manufacturer
highlights
- Leveraged integrated teams to prepare carve-out financials, enhance forecasting and reporting, and run a competitive financing process
- Received 10+ bids from banks and private credit funds
- Secured a $185M credit facility
- Used competitive term sheets to lower pricing and expand the accordion from $20M to $50M
summary
Palm Tree was engaged to support a company facing liquidity challenges, an expiring revolver, and the need to separate its divisions into standalone financials.
Leveraging our integrated consulting and banking teams, we prepared carve-out financials, enhanced forecasting and reporting, and ran a competitive financing process that secured a significantly upsized credit facility.
results
Carve-Out Financials: Prepared standalone financial statements for each division, including headcount mapping, revenue/gross margin analysis, and stand-alone/allocated cost analysis.
Forecasting & Reporting: Developed a financial reporting package and forecasting model to provide divisional performance insights and enable strategic planning.
Operational Planning Support: Partnered with commercial and operations leaders to analyze pricing strategy, sales planning, production capacity, and asset utilization, creating a multi-year plan and long-term contract model.
Capital Raise Execution: Marketed the transaction broadly, receiving 10+ bids from banks and private credit funds, and secured a $185M credit facility consisting of a $125M revolver, $10M delay draw term loan, and $50M accordion.
Negotiation Leverage: Used competitive term sheets to lower pricing, expand the accordion from $20M to $50M, and unlock incremental liquidity to fund a subsequent partner buyout.
Strategic Flexibility: Identified and supported a buyout of the minority partner by the majority owner, enabling greater operational flexibility and positioning the company to expand into new business lines and industries.
conclusion
Our integrated approach provided the company with immediate liquidity relief, enhanced financial infrastructure, and strategic flexibility—positioning the business for long-term growth.
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