$7M | Debt and capital for industrial manufacturer

KitsWest Capital advised an Edmonton-based owner-managed industrial manufacturing company on the structuring and execution of a $7M senior debt facility. The financing supported working capital needs, equipment investment, and operational growth across the manufacturing platform. The borrower required a lender with sector familiarity to underwrite inventory-heavy working capital cycles and capex-intensive growth without imposing covenants ill-suited to a manufacturing business.

The mandate

The engagement covered situation review and capital structure analysis, preparation of a lender package documenting collateral coverage and cash flow capacity, identification and engagement of qualified Canadian commercial and asset-based lenders with manufacturing sector experience, term sheet negotiation across multiple lenders, and execution through to closing. Pricing, advance rates against AR and inventory, and covenant package were optimized through competitive tension.

Why this transaction represents our practice

This $7M financing is representative of the debt and capital advisory work KitsWest delivers for owner-managed manufacturers and industrial businesses across British Columbia, Alberta, and Western Canada. Manufacturing borrowers benefit from running structured processes because the right lender match is sector-specific, and pricing and covenant flexibility move materially when multiple credible lenders compete for the mandate.