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Rosenthal Provides $1 Million Production Finance Facility for New Jersey-Based Food & Beverage Packaging Manufacturer
May 11, 2020
Source: Rosenthal & Rosenthal, Inc.
Rosenthal & Rosenthal, Inc., the leading factoring, asset based lending and purchase order financing firm in the U.S., today announced the completion of a $1 million work in process production finance deal for a food and beverage packaging manufacturer.
A private investment group tapped Rosenthal to help with the expansion of one of its portfolio companies in the food & beverage sector. Amid the COVID-19 pandemic, the company was asked to significantly ramp up production for several of its major beverage customers to meet the high demand for product. The influx of additional orders would double the client’s revenue. Given the need for funding material costs and direct labor, the private investment group determined that purchase order financing was the right tool to address the client’s increasing financing needs, as an alternative to contributing more permanent equity.
Rosenthal was able to quickly structure a supply chain finance solution for the client in the form of a $1 million work in process production finance facility. Rosenthal’s financing allowed the client to secure specialized packaging material from a large domestic manufacturing supplier and funded the direct labor required to fulfill the incremental sales orders. The deal involved issuing purchase guarantees and cash payment on terms to the domestic material supplier as well as cash funding for the direct labor costs.
“Rosenthal’s PO Finance team was able to structure and quickly fund a production deal for this client in an extremely challenging environment,” said Rosenthal Division Head Paul Schuldiner. “Rosenthal’s ability to provide work in process production financing was a decidedly better alternative than raising more equity for both the private investment group and the company’s other shareholders, especially with all the uncertainty surrounding COVID-19.”
For more information about Rosenthal and this transaction, please visit www.rosenthalinc.com and contact Paul Schuldiner at 212-356-1703 or PSchuldiner@rosenthalinc.com.
ABOUT ROSENTHAL & ROSENTHAL
Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading factoring, asset based lending and purchase order financing firm in the United States. Founded in 1938 by Imre J. Rosenthal, the firm is now led by the second and third generations of the Rosenthal family. As a privately held company, Rosenthal is committed to providing personalized service and flexible lending to clients across a broad range of industries. Rosenthal has offices in New York, California, Georgia and North Carolina.
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