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Contact Blacksail Capital

1 Toronto Street
Toronto, ON M5C 2V6

Telephone: 416.708.8746 (CANADA)
Telephone: 512.710.6737 (US)
Email: info@nextedgecf.com

News & Blog

News & Blog

Financing Solutions and Expert Support to Empower Companies

April 28, 2020

Financing Solutions and Expert Support to Empower Companies

Dear clients and partners,

At Blacksail Capital Partners, we are very empathic to all the personal and corporate pain that is happening as a result of the COVID-19 pandemic. In our view, one of the things we can do as a Business to Business Lender is to keep trying to provide capital. To that end, we list a couple of examples of “down the middle” type of opportunities that we are currently working on with our clients to help fund their business’.

  • Term Sheet #1 – Provide a $5mm A/R only Revolver to a Private Equity Firm to support the buyout of a successful sub-contractor in the home building sector that does not rely on progress billings.
  • Term Sheet #2 – Provide a $5MM A/R and Inventory Revolver to a Landscaping Equipment Company to refinance its existing Bank facility.

Since the onset of the pandemic, we have seen an increase in the influx of lending requests, primarily due to the rapidly changing economic environment and its effect on both the Banking industry and the clients that they serve. Transactions in progress in January and February have suddenly become derailed. While some of these requests are even outside our credit parameters, we want you to know that we are there for our referral sources and borrowers to help them try to find solutions during this unprecedented moment in our history.

Life Sciences Company

The Borrower

A Life Sciences Company (the “Company”) focused on developing new ways to regenerate the body to optimal performance by, finding new ways for the body to heal itself, addressing orthopedic injuries, wound care, pain management, and many other issues.

The Company currently sells five products in two categories:

  1. Membrane Wraps which are skin grafts to repair damaged tissue; and
  2. Fluid Flow – regenerative therapies for soft tissue repair.

The Strengths of the Company

  • Established market for their multiple lines of products;
  • Recognition and acceptance from the U.S. Department of Health and Human Services as a registered line of products qualified for insurance plans;
  • A good mix of clients from family doctors to hospitals;
  • Strong sales figures and strong growth projections.

The Situation/The Challenge

  • Converting cash on a delivery business model with doctor’s offices and hospitals to a billing model;
  • Not adapting strict rules around operations and collections a “Pay when Paid” model;
  • Improving the duration of their A/P;
  • Getting caught up with long-dated accounts payables.

The Blacksail Partnership Outcome

$1,000,000 revolver to accomplish four main objectives:

  • Operating capital as they grow in 2020;
  • Pay down the accounts payable;
  • Payoff remaining loans; and
  • End shareholder advances to support the business.

 

For more information on Blacksail Capital Partners, please contact us.

 

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