Precision Machining Company

Rhode Island/Virginia

This company consists of several affiliated companies operating from 3 distinct plants. For decades, the Company has provided precision machining and plating services to the automotive industry. The company employs almost 300 people, including over 2 dozen engineers. In 2008/2009, it diversified its business to offset the general decline in the nation’s automotive sector, and made major capital investments to attract new customers in the defense, aerospace, firearms and solar technology fields. As a result, the Company required more working capital and a new, pro-active banking relationship that would support its anticipated growth. After several area banks advised the owners to seek equity financing, they engaged Clubhouse Capital. Clubhouse brought the Company a finance package from a national bank consisting of two term loans and a revolving line of credit, at extremely competitive rates. The owners retained 100% of their equity, and greatly enhanced the Company’s liquidity through (i) a huge reduction in annual debt service, and (ii) increased availability under its new working capital line of credit. (Summer 2010)