Reducing Complexity and Borrowing Costs

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Nº 013

Reducing Complexity and Borrowing Costs

Financing Breakdown

Risks

The bank asked Diamond Willow to test capital markets before calling the loan and pushing the borrower into bankruptcy.

Scenario

Turnaround

Industry |

Forest Management

Key Challenges

Negative historical EBITDA

Single customer short contract

Special loans at a bank

Loan Type

Equipment Consolidation

Outcomes

Costs Reduced

The consolidated capital structure materially lowered debt service costs and simplified reporting.

Company Risk Reduced

Diamond Willow facilitated a renewal and extension of the client's only contract, providing comfort to lenders.

Liquidity Increased

Working capital improved through reduced payments and smoother cash cycles.

Lender Type

Private Credit

Bank

Result |

Stability Restored

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Overview

Reducing Complexity and Borrowing Costs

Diamond Willow consolidated over a dozen equipment leases into one $2 million facility, simplifying reporting and freeing working capital.

The long-term owner was in special loans, facing a short-dated contract and a bank ready to exit. Referred by the bank, he partnered with Diamond Willow to steady the business: we extended the key contract, tightened cash controls, and set a lender-aligned path that cut carrying costs and restored day-to-day flexibility.

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The Challenges

Negative historical EBITDA.
One key customer with a short contract.
In special loans at a bank.

Risk Mitigants

Contract length extended prior to refinancing.
Financial controls were implemented to improve reporting and cash management.
Material equipment value supporting the facility.

The Outcome

One lender, simpler terms, and cleaner reporting: our structure lowered carrying costs and freed working capital. The owner regained confidence, with a clear plan and cash flow flexibility that put the business back on track and created a bridge back to conventional banking.