Flatbay Capital closes a $3.9MM loan for alloy manufacturer

For 22 years our client, IBC Advanced Alloys, has manufactured beryllium and copper alloys to a variety of industries, becoming a leading expert in their field.

The company’s mission is to produce the highest quality products in both the defense and commercial sectors, providing long term value to their customers and shareholders.

The Situation

In 2023, IBC experienced a decrease in profit margins due to two reasons: metal costs and existing customer contracts. Unfortunately, metal prices have risen because of inflation, forcing businesses to pay more out of pocket.

Along with the increase in supply cost, they needed to free up working capital to solve their inventory needs relating to their manufacturing backlog.

With prior year losses and continued margin decrease in 2024, the alloy manufacturer was deemed unbankable to the finance sector.

So, they turned to Flatbay Capital.

The Solution

Flatbay Capital listened to the wants and needs of the client and tailored a deal that met both.

We were able to provide a $3.9MM sale leaseback loan to pay off their remaining loan to the incumbent lender and provide extra cash to finance working capital.

"I am glad to have been included in this company's turnaround story and look forward to seeing them continue to raise the bar in their industry,” BDO of Flatbay Capital, Steve Hansen, said.

A big thank you to IBC Advanced Alloys for partnering with Flatbay Capital! We can’t wait to see your expected turnaround nearing the end of 2024!