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
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