Government Loan Guarantee II

Company: $70 million high-tech chip manufacturer.

Goal: Maintain successful narrow customer base and business plan; enabled unrestricted growth.

Challenge: Lenders did not like the revenue mix: 90% of the company's sales were from outside the US; and the company had only 2 major customers.

PRIMAGENCY Solution: Early identification of a federally funded insurance program for lenders that guarantees 90% of a loan for qualified foreign sales.

Outcome: Company borrowed 90% of the face value of accounts receivable and customer-concentration became a non-issue.

Airball Financing

Company: $250 million publicly traded telecom company.

Goal: Restructure and refinance balance sheet; generate $80 million; keep control of business in a down stock market.

Challenge: Company had been losing money in the tech sector and had only $5 million market cap; company had collateral for $50-$60 million leaving them $20 million short of necessary financing.

PRIMAGENCY Solution: Airball financing (unsecured term loan) based on >conditional< cash flow benchmarks designed by PRIMAGENCY to lead the lender.

Outcome: Borrower was able to focus on making money, not raising equity.

Stretching the Debt Envelope

Company: $80 million publicly traded hi-tech manufacturer.

Goal: Change focus from old commoditized product line to new high-margin product; shift customer base.

Challenge: Heavy capital expenditure needs for new equipment to drive the shift in customer mix; eroding margins; time to make the changeover.

PRIMAGENCY Solution: A sub-line Capex draw-down facility based on performance goals.

Outcome: Borrower was able to finance the necessary capital expenditures and successfully change the business focus without raising equity.

Maximizing Liquidity

Company: Small cap medical software company providing turnkey software systems for hospitals and other health care institutions.

Goal: Cash availability for growth and paying off creditors after refinancing.

Challenge: Lead the lenders to propose funding without requiring past-due trade creditors to be paid in full at closing.

PRIMAGENCY Solution: Create a strong borrower profile and formulate an underwriting memo that included a subordination trust allowing long-term payout of past-due trade debt.

Outcome: Company left closing with $1 million cash for growth.

Hidden Collateral

Company: Well known $100 million media company.

Goal: Refinance a magazine publisher whose tangible assets were far less than the requested loan amount.

Challenge: Derive substantial liquidity from its intangible asset - its trademark.

PRIMAGENCY Solution: Two steps: first, obtain a loan guarantee from the insurance capital markets on the value of the trademark as acceptable collateral; second, offer the guarantee to qualified lenders able to make the loan.

Outcome: The company's trademark collateralized a loan of $60 million.

Credit Enhancement

Company: Specialty finance company providing loans to high-net worth individuals that lease small aircraft.

Goal: Meet $300 million annual demand for financing from qualified lessees.

Challenge: Increase the funding capacity of this lender without taking on more equity or going public.

PRIMAGENCY Solution: Create a financing mechanism to enable the finance company to periodically sell off small pools of leases through Wall Street by fully insuring the lease payment streams of the high net-worth lease guarantors.

Outcome: The finance company was able to meet the market demand for its services within its current equity configuration.