Avomex, Inc. ("Avomex" or the "Company") manufactures and distributes avocado based projucts and other specialty food items that are sold to the retail and food service markets in the United States. It processes Mexican grown avocados into avocado pulp and guacamole; and co-packs various juice drinks and meat entrees.
Avomex required a new credit facility in order to consolidate indebtedness, fund the introduction of new product lines and expand its production facilities located in Mexico.
GulfStar Group Strategy
GulfStar prepared and executed a private placement strategy to move the company from traditional asset-based loan facilities, which were restrictive due the preponderance of Mexico-based assets, to a cash flow-based facility that was funded independently from its assets and of sufficient size to fun the company's expected capital needs.
GulfStar contacted approximately 20 lenders that included banks, finance companies and hedge funds.
GulfStar received 6 term sheets and negotiated a cash flow covenant credit facility that allowed the company to meet its growth objectives.
Capital Raised - $25.5 million
$15 million Revolving Facility
$10.5 million Term Loan