A foundry that manufactures and markets highly-engineered, complex iron castings primarily for the heavy truck market.
Brookwood assisted Golden Casting in securing funds to support its capital expenditure program despite factors about the business and industry that weakened investor and lender interest.
Engagement Process and Outcomes
The Challenge – Golden sought to fund a substantial capital expenditure program. The financing was complicated by the fact that the Company was very capital intensive, cyclical and subject to intense foreign competition.
The Solution – Brookwood advised the Company to increase the amount of capital they considered raising in order to improve balance sheet liquidity and thereby mitigate some financing risks. Brookwood then marketed the opportunity to numerous providers of junior capital.
The Result – The engagement team culled the interest to two prospective investors, a one-stop-shop and an alternative, boutique investor. The boutique investor completed the transaction on the terms we proposed.