Siena Lending Group – Partnering With Financial Sponsors | Supporting a Retailer’s Rapid Growth (Lovesac Mistral Equity Partners)

SPONSOR: Mistral Equity Partners

CLIENT: Lovesac

Lovesac is a premium sofa brand whose primary sales channels are mall stores and eCommerce. The company, owned by Mistral Equity Partners, was growing rapidly. Mistral contacted Siena to provide capital to fund store builds and rebuilds.

Challenge

As a smaller scale retailer with a seasonal business, Lovesac would have faced difficulty structuring a deal with another lender.

Solution

Siena worked with Lovesac for more than four years, increasing the line of credit over time to help support the company’s growth.

RESULT

Lovesac was able to obtain traditional bank financing in 2017 and executed a successful IPO the following year.

SPONSOR: RFE Investment Partners

CLIENT: PCX Aerostructures, LLC

Lovesac would not be where it is today without the support from Siena over the years. They were constantly engaged and worked with us through our various stages of growth to get us to where we are today.”

PCX Aerostructures, LLC is a premier supplier of advanced mechanical systems for leading OEMs in the aerospace industry. The company—owned by RFE Investment Partners—had a strong backlog of orders, primarily for components that Boeing needed to upgrade U.S. military helicopters. When PCX had trouble keeping up with demand, RFE turned to Siena to deliver a working capital solution.

Challenge

PCX needed additional working capital, but the company was constrained by its previous lender, whose financing solution was based primarily on cash flow.

Solution

While most asset-based lenders won’t allow clients to borrow against work-in-progress (WIP), Siena recognized this situation was unique given PCX’s competitive moat as a government-approved supplier. We partnered with another lender to provide a creative financing solution to fund the company’s WIP.

RESULT

PCX used the additional liquidity to convert on its backlog and increase profitability.