Fender

Parameters

Revolving FILO Credit Facility: $25.0MM (up to $40.0MM)

Situation

The legendary musical instrument company was in the market for incremental committed capital to offset the risk posed by rising tariffs and softer demand in their industry. Tiger Valuation Services is the incumbent inventory appraiser.

Tiger’s Role

Tiger Finance ultimately ended up winning the mandate by proposing a $40.0MM Revolving FILO Credit Facility with seasonal flexibility on draws and paydowns. The facility supplements a senior revolver provided by JP Morgan. Tiger gave the Company the option to add certain foreign assets at a later date.

Resolution

Tiger remains a Lender to the Company, and the committed capital is available to them should they need it, which serves to bolster the liquidity position.