Pharmaceutical Manufacturer and Distributor



Working Capital Line of Credit

Pharmaceutical Manufacturer and Distributor

The company is a manufacturer of OTC pharmaceutical products and owned by a Private Equity Firm who restructured their debt when they acquired the company. The company had experienced an up and down history due to industry and FDA regulatory changes, but had successfully shifted its core business to manufacture more profitable and less regulated product lines thanks to the capital infusion of the Private Equity Group and sweat equity by the key management team. This business shift has seen the company’s revenues soar in the last two years helping them reverse a trend of losses and finally seeing light at the end of the tunnel. By the 4th quarter of 2010, the company was awarded with the opportunity to provide additional product lines to its existing core customers. The company was missing one key ingredient: a working capital partner.

Southeastern provided a financing structure on the company’s Accounts Receivable and Inventory with a $2,250,000 facility. This facility provided sufficient funds for the company to shore up its trade creditors which was an integral part of the company’s turnaround plan. Furthermore, the facility was closed prior to key customer deadlines in time to provide the funding necessary for the company to build up inventory and it meet the new product line purchase orders awarded by its customer base. The company improved its position as it cleaned up payables while meeting its obligations to its customers with room in the facility to support future growth. The extensive due diligence and involvement of Southeastern’s top management resulted in a facility that was deliverable in a structure that was bette than proposed and met the short timeframe required to meet the company’s obligations to its customers. Since closing, the company has been able to take advantage of significant vendor discounts.