CG Debt Capital Markets arranges US$18m receivables and inventory-backed financing

A US industrial forging business has secured US$18m in senior secured credit facilities backed by receivables, inventory and equipment, providing additional working capital following its acquisition by a family office earlier this year.

CG Debt Capital Markets acted as exclusive financial adviser on the transaction, which was reported on 8 October. An unnamed US asset-based finance company provided the lending facilities.

The financing uses a combination of current assets and industrial equipment to support borrowing capacity, allowing the manufacturer to draw on a broader collateral base than receivables alone.

Advances are supported by eligible accounts receivable and inventory, alongside an equipment component calculated using net orderly liquidation value, or NOLV.

The equipment-backed portion of the borrowing base is subject to reductions over 60 months, a feature designed to reflect the declining collateral value available to support lending as the financing progresses.

The borrower was acquired in February 2026 by a family office that paid cash for the purchase and provided an initial working-capital injection.

Before the acquisition, the manufacturing operation had been part of a larger private equity-backed industrial platform undergoing a prolonged disposal of corporate assets.

According to the transaction report, the company needed additional working capital to meet increasing customer demand and a growing order backlog.

Revenue has reportedly increased by approximately 60% since the acquisition, although the underlying financial results and reporting period were not disclosed.

The facility illustrates how asset-based financing can support a manufacturing business that has valuable equipment and inventory but requires additional liquidity to finance production ahead of customer payments.

Receivables generated from completed sales can provide one source of borrowing capacity, while inventory finance can help fund the conversion of raw materials and work in progress into finished products.

Equipment-based availability adds another source of secured lending support, although the scheduled reduction in its contribution means the borrower may become increasingly dependent on receivables and inventory as the facility matures.

The identity of the borrower and lender, the facility’s interest pricing, maturity and individual asset advance rates have not been disclosed.

Nevertheless, the transaction highlights the use of multi-asset borrowing structures to support industrial businesses undergoing ownership changes and subsequent operational expansion.