Client Need:
Highland’s Client had identified a market opportunity to launch a new product division. This new venture would require significant capital to fund inventory build-out, sales channel development, and other start-up operations. The client had sufficient capital from existing operations to fund a portion of the identified start-up costs, but would require outside funding to properly capitalize the project. The client did not want to pursue equity investment and thereby open the company to outside influence.

Solution:
After evaluating the start-up funding and investment requirements, Highland suggested the development of a lending package proposal to be submitted to various Banks to finance inventory development requirements, and to provide an additional capital infusion to fund other start-up requirements.

Highland Support:
In support of the client, Highland performed the following project tasks;

• Proforma Financial Modeling of new venture for five year period
• Loan package development fulfilling all bank requirements
• Identification of, and communication with targeted lenders
• Evaluation and comparison of various lender Offer Sheets
• Communication with Client Executive Team for lender selection
• Assistance in deal closing

Result:
Client successfully closed a funding package, which included 1) multi-million dollar Line of Credit to fund Accounts Receivables, 2) multi-million dollar Line of Credit to fund Inventory build-up and 3) multi-million dollar refinancing term loan collateralized by existing company assets. The net new capital infusion totaled several million dollars and adequately funded the successful launch of the New Division.

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