Broad River Furniture, Inc. Tombstone

Case Study – Refinancing

Broad River Furniture, Inc. is the largest and fastest-growing Ashley Furniture HomeStore licensee in the Carolinas and Georgia.  The Company is headquartered in Charlotte, North Carolina and operates fourteen HomeStores and one outlet throughout the Carolinas and Georgia.


  • Broad River had been a customer of SunTrust for several years and the outstanding debt was currently being secured by personal guarantees
  • The shareholders were looking to establish a new credit facility that would consolidate existing debt and letters of credit, provide working capital needs and the flexibility to pursue growth initiatives while not requiring personal guarantees


  • While the Company was profitable, it carried a negative book equity value due to repurchasing shares of one of the Founders and taking advantage of accelerated depreciation opportunities
  • Adjusting for annual lease payments caused the Company’s balance sheet to appear more significantly leveraged

Successful Solution:

  • Anderson LeNeave contacted numerous financial institutions and received several proposals
  • Anderson LeNeave originated and structured a senior secured credit facility with SunTrust Bank that allowed the Company to refinance existing debt and provide for ongoing growth needs while not requiring personal guarantees