Summit engaged directly with a national lender who was looking to sell its loan facilities associated with a middle market protein logistics and trading company.
Industry: Agricultural Commodity
Subject: Middle market Texas based, top tier exporter of pork and other proteins into the NAFTA market
Circumstances: Summit engaged directly with a national lender that expressed a desire to exit its lending relationship, comprised of a series of loans totaling $39 Million, with the company. A subsidiary of the company had entered into a number of trade finance transactions in prior years that had led to significant cumulative losses, creating an over-leveraged balance sheet. The balance sheet issues were causing challenges with vendors, and the company was carrying aged accounts payable which needed to be addressed as part of the Summit transaction in the form of additional liquidity.
Solution: Prior to acquiring the bank debt, Summit and the sponsor group agreed in principal to the terms of a post-closing balance sheet restructure and additional loan advances to right size the accounts payable.