Mezzanine Financing for a Local Company

The Situation

President Jason Macari bought Summer Infant, Inc. in 2001 and sought to ramp up the business by expanding the product line and diversifying its customer base. Current customers include Toys 'R Us, Babies 'R Us, K-Mart, Target, and other major retailers.

About the Opportunity

In 2003 the company expanded operations to the U.K., while outsourcing manufacturing to lower cost producers overseas. To continue on its growth path, the company needed additional capital to cover short-term financing needs as it continues to expand within domestic and international retail markets.

Why the BDCRI Got Involved

Previously, a company like Summer Infant, Inc., based in Lincoln, Rhode Island, which designs and markets infant products throughout the U.S., would have had to go out of state to get it mezzanine financing.

The BDCRI decided to provide $1 million in mezzanine financing to Summer Infant, Inc. because:

1. Jason Macari had put together a strong management team that knows the infant products industry.
2. The company was competing strongly on the industry's key success factors: product innovation, excellent service, and competitive pricing.
3. The company was focused on a market segment they could serve most profitably.
4. The management team had a solid growth plan based on an integrated production and marketing penetration.