Case Summary: Kraus Group of Companies

Kraus Group of Companies

$40 million Canadian term loan

Overview

The Kraus Group of Companies, based in Waterloo, Ontario, is a vertically integrated manufacturer and distributor of premium carpet and flooring serving both the residential and commercial markets in Canada, the US and Australia.

Challenge

The company experienced significant sales declines from 2008-2011 as a result of the recession and the housing crisis.  As a result, the Company began to consolidate its operations and streamline its business to focus on the most profitable markets and therefore incurred additional levels of sales contraction.

Management and the Company's owners sought a partner who could work with the Company to recapitalize their balance sheet.

Solution

Crystal Financial moved quickly, closing a $40MM Canadian denominated first lien term loan in 13 business days.  The facility was secured by all of the Company's assets which included both working capital assets as well as machinery & equipment and real estate.