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Gibraltar Extends $10MM to Sponsor-Backed Specialty Chemical Company

March 05, 2019, 10:30 AM
Filed Under: Chemicals


Gibraltar recently closed on a $10 million credit facility for a sponsor-backed specialty chemical business located in the Southwest.

The company performs contract blending, compounding and packaging of chemicals that require special handling, such as flammable, corrosive, combustible, highly sensitive and hazardous materials, as well as those requiring specialty container sizes. The chemicals are used in a variety of markets, including automotive, marine, aerospace, construction, electronic, geotechnical and military.

Although the business model, market and facilities were strong, operating challenges, including fluctuating raw material costs, were causing revenue volatility. The majority owner — a private equity group — looked to Gibraltar for a flexible source of working capital to support the company through a transition to greater stability. The company also needed funding to implement cost savings that would improve profitability over the long run.

Access to Senior Credit Decision Makers Was Key to Quick Results

In this case, the clients especially appreciated the access to senior management that enables Gibraltar to make and implement decisions quickly and forge strong relationships with its clients. Chief Credit Officer Mark Stoeberl took a personal role in finding the best solution for the chemical company.

“Part of my job,” says Stoeberl, “is to offer suggestions on how we can better structure transactions for our clients to maximize their potential for growth. Lending, for us, is not purely a numbers game. It’s about conversations and relationships.”

Gibraltar leveraged the value of three types of collateral — accounts receivable, inventory, and equipment — to provide the flexible support this business needs to meet its challenges and open new opportunities.





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