Company Overview

A stock and custom datalabel printer that distributes labels through a network of dealers and brokers and also sells directly to large retailers and national office supply distributors.

Engagement Overview

Prior to Fort Dearborn's involvement, the Company experienced margin erosion due to pricing pressure brought on by industry wide volume declines and commodity cost increases. The Company retained Fort Dearborn to help develop an operating plan, identify and implement profit improvement initiatives, and secure new financing.

With Fort Dearborn's assistance, the Company returned to profitability, within a few months, by successfully increasing prices, eliminating an unprofitable product line, hiring a new CEO and rationalizing the workforce.

With management's successful execution of the operating plan and a credible plan to sustain and increase profitability throughout the year, Fort Dearborn and the Company secured financing in an expedited fashion. With only a few months of profitability, the Company received term sheets within 30 days and a commitment to lend within 120 days.

The refinancing of the Company was a noteworthy example of FDP's skill in successfully raising capital in "story" situations.  From the start of the engagement through closing of the refinancing, FDP utilized its extensive operational, financial and capital markets expertise to deliver outstanding results for the Company.

Results

Fort Dearborn played a vital role in securing an $8.8 million credit facility for the label printer. The new facility consisted of a $5.0 million revolving line-of-credit and $3.8 million of term and mortgage debt facilities.

The new financing structure enabled the Company to continue to profitably pursue its mission.