Business Capital Delivers $2.5 Million Recapitalization & Acquisition Financing for California Wine Company
A multi-faceted California wine company engaged in purchasing, producing and distributing bulk wines to both domestic and international customers. The Company actively resells bulk wine and blends, bottles and labels product for shipment at its facility located in the heart of California’s most important wine production region. With over 25 different labels, their products represent a broad range of variety and price. The company’s wine production exceeds 1 million bottles, with distribution throughout the US, Europe, Canada, Asia, and Latin American. The founder, a 5th generation Californian with more than 25 years in the wine business, is a well-known pioneer in the development of California wines outside the U.S.
The company was experiencing a cash crunch due primarily to the loss of a key customer who filed bankruptcy. The company had an offer to purchase the distribution rights of a well-known wine label, but needed additional capital to do so. Their current lender would not provide the financing to accommodate the purchase of the new bulk wine needed for process in order to allow the company to expand.
Business Capital structured and secured an SBA line of credit which will serve to refinance an existing bank loan and provide the company with the additional working capital they need to execute on purchasing a distribution agreement and further their plans for growth.