Key results from the engagement
Where it started
Alderbrook had taken on $40M in debt during a 2019 facility expansion, priced on a floating rate that climbed steadily for three years. By the time they called us, interest expense was consuming 6.8% of revenue and two lenders were asking pointed questions ahead of a covenant test.
The leadership team's first instinct was to cut costs across the board we suspected the real constraint was the capital structure, not the operation — and the numbers backed that up.
What we did
We began with a full diagnostic of the capital structure — mapping every facility, covenant, and maturity against projected cash flow under three demand scenarios. That model became the basis for a refinancing package we took to five lenders, playing them against each other on rate and covenant flexibility.
In parallel, we identified $1.1M in working-capital inefficiencies — mostly inventory sitting longer than it needed to across two underperforming SKU lines — and folded those savings into the lender conversation as evidence of improving fundamentals.
What changed
The refinanced facility closed at a fixed rate 280 basis points below the prior floating average, with covenant headroom rebuilt to a level management hadn't seen since before the expansion. Combined with the working-capital cleanup, EBITDA margin moved from 11.4% to 19.6% over the engagement.
A margin cushion no one expected to see again
The refinanced facility closed at a fixed rate 280 basis points below the prior floating average, with covenant headroom restored to pre-expansion levels. Combined with the working-capital cleanup, EBITDA margin moved from 11.4% to 19.6% by the close of the engagement.