Whitehorn Merchant Capital Inc. recently completed the refinancing of Goldray Industries Ltd. (“Goldray”). The Calgary area manufacturer of glass products engaged Whitehorn to raise secured and subordinated debt to facilitate the refinancing of preferred shares and fund investments in working capital and capital assets.
Prior to Whitehorn’s involvement, Goldray faced a challenge. The demand for its products had been increasing on a monthly basis and Goldray needed more cash to meet customers’ demands. To overcome Goldray’s challenge, Whitehorn canvassed the Canadian financial markets and identified:
- A global, chartered bank to provide a new, larger operating line with reasonable terms, a favourable covenant package;
- A local specialty lender to provide a larger equipment loan facility, with a longer term than the previous facility; and
- A subordinated debt provider asking a low teens interest rate and willing to defer a significant portion of its principal for five years.
Through Whitehorn’s efforts, Goldray was able to reduce its cost of capital, improve its monthly cash flow and invest additional cash into working capital and capital assets to meet current and future customer demands.
Contact Whitehorn today for help with your financing transaction.