A public company that developed toys and publishes electronic games for a variety of game platforms, had experienced significant losses and watched their stock price drop from a high of nearly $100.00 to $1.50 per share.  As a result, it had replaced top management and designed a new strategy focusing on a specific category of electronic games for a specific game platform.  Although the strategy began to successfully play out, their existing senior lender was unable to support the import finance facility required by their new strategy.  This put substantial orders in jeopardy, which put the viability of the company in jeopardy.

The new CEO of the company contacted Transcap.  Transcap issued its LCs to purchase the game cartridges from the overseas manufacturer.  Upon shipment of the goods to the company's customers, Transcap was reimbursed out of the proceeds of the senior lender's receivable facility.

The Good (Great) Part!!
As the revenues grew, the company bootstrapped off of the success of the Transcap LC facility and raised more equity.  This in turn enabled the senior lender to increase its overall facility and eventually support the import finance facility.  Since the implementation of the new strategy and the support given by Transcap, the company has had two 3 for 2 stock splits and its price is nearly $50.00 per share.

The Not-So-Bad | The Ugly