CASE STUDY: Technology
THE DEAL
SIZE: $2 Million, Increasing to $7 Million
LOCATION: British Columbia
SECTOR: Technology
LOAN TYPE: Line of Credit
THE REAL WIN FOR DWA.
DWA fostered a multi-year relationship with the company, providing early-on education on debt financeability and steps to be taken in preparation for the process. Through our large network of alternative lenders, DWA was then able to provide financing for a complex international transaction that no conventional lenders in North America could do, unlocking liquidity and jump-starting rapid growth via multiple acquisitions
THE CHALLENGES.
Negative EBITDA at the public Canadian corporate level
US division required a line of credit with US State Agencies as counterparties
No ability to assign receivables or notify counter-parties
RISK MITIGANTS.
US division generated positive free cash flow
State Agencies, so little chance of credit default
Cash controls put in place to protect lender
OUTCOME.
Initial $2 million margined line of credit
Subsequently completed a US acquisition via expanded line of credit
Established a Canadian division line of credit during an acquisition and increased combined facility to $7 million
BORROWER TESTIMONIAL.
“The team at Diamond Willow took the time to really understand our business and capital needs before getting engaged under their fully aligned structure. Using their vast lender network and creative problem solving skills we were able to secure the appropriate debt financing inclusive of one used for an acquisition with DWA.
We think of DWA as partners in our business and would not hesitate to use their services again or recommend them to any business in need of debt capital.”
