Vertical
“We were undergoing a recapitalization and had recently acquired one of our competitors. As a result, we needed a new facility that provided more availability and flexibility. FGI was able to work around the complexities of our situation and come up with a creative solution that provided us with a flexible, covenant-light $7 million ABL facility against our A/R and inventory.”
Introduction
Founded in 2004, Vertical is a recognized leader in advanced communications systems and platforms used for unified communications applications, call centers, mobile initiatives and more. With over 100,000 customer deployments, Vertical continues to develop leading edge products and solutions that enable businesses to engage their employees and better serve customers.
Situation
Vertical was undergoing a greater recapitalization which involved a change in their equity sponsor and sub-debt lenders. At the same time, the company had acquired a large telecommunications focused systems integrators, Fulton Communications. Their current lending arrangement did not provide them with the flexibility or availability they required to pursue their sales initiatives. Therefore, they needed to find a new lending partner.
Solution
FGI took the time to really understand the differing business models pertaining to each of the companies, Vertical and Fulton, while also considering the change in credit structure that was underway.
This in-depth understanding of their business’ complexities enabled FGI to take a different view on the company’s collateral, offering Vertical a flexible, covenant-light $7 million ABL facility against A/R and inventory.
