Limestone Boat Co. yesterday said it secured $6 million in credit financing that it will use to improve its White Bluff, Tenn., manufacturing facility and buy new equipment, which it says will help satisfy increasing demand and reduce its order backlog.
The funding will also be used as working capital and for general corporate purposes, Limestone said in a statement.
The financing will allow Limestone to “bolster its inventory levels, reduce supply-chain disruptions on manufacturing, and commence the phased transformation of its manufacturing capabilities through the expansion and reconfiguration of select production spaces, integration of additional technology, expansion of its large boat production capacity and enhanced manufacturing process flow,” the statement added.
The credit financing is scheduled to be provided in a series of tranches between August and October.
“This capital injection will strengthen our balance sheet and further reinforces the foundation we’ve built since acquiring the company just 14 months ago,” Limestone CEO Scott Hanson said in the statement. “Investing in procurement, the facilities, technologies and processes required to expand our throughput capacity and increase production scale will enable us to meet our existing order backlog and the growing demand for our boats.”
Roar Capital served as a strategic consultant in the credit agreement, said Limestone, whose headquarters is in Collingwood, Ontario. Aside from the Limestone brand, the company produces Aquasport and Boca Bay boats.