$40 million Working Capital Revolver
An Iowa-based copper fabricator was owned by a Korean company and was being pressured by their commercial bank. The lender was extending unsecured credit and was becoming uncomfortable with the credit as a result of falling copper prices and a faltering Korean economy which put the parent guaranty into question and two years of losses.
Francisco addressed the problem by arranging a $40mm revolver through a New York based lender. The fully secured revolver was significantly exposed to the price of copper on the inventory part of the credit and required close monitoring. The incumbent lenders received every copper penny owed them, including interest.