A $75 million VC and strategically backed aerospace company had been using the cash flow from its services business to finance the growth of its data sales business without considering significant long-term payables coming due. The company needed to arrange new financing within 30 to 60 days or risk causing permanent damage to its business prospects.
The company engaged a E78 team member as interim CFO. The E78 interim CFO was able to renegotiate the company’s credit facility with its current bank. The new credit facility included an additional $20 million in financing on both a revolving and long-term basis, extended the existing facility and put in place broader and more flexible terms. The execution of this facility required the cooperation and support of the existing investors for guarantees and modifications to their existing interest in the Company, all of which was facilitated by the E78 interim CFO. The E78 executive also prepared a five-year financial forecast and capital structure plan with an investor presentation to support a longer-term capital raising effort.
The new credit facility allowed the company to get current on its payables and bought the company time to execute on the longer time financing strategy, which is currently ongoing.