The largest manufacturer of commercial washers and dryers in the world also sells and finances their washers and dryers to clients in over 40 countries.  In 1998 its parent company was selling the manufacturing company, and a client of Lehman Brothers was interested in buying the manufacturer.  Lehman Brothers hired Boston Portfolio Advisors to determine essentially whether the manufacturing company and its loan portfolio and trade receivables were worth buying. 

Boston Portfolio Advisors evaluated the company management, commented on the portfolio, determined whether the loans were properly documented, and evaluated credit quality.  Based on our assessment of the company and its portfolios, Lehman Brothers decided to extend its client an ongoing line of credit necessary to finance the manufacturing company’s portfolios.

On behalf of Lehman Brothers, for the past 2 ½ years Boston Portfolio Advisors has performed monthly surveillance/reporting on the manufacturing company’s portfolio and performed periodic site reviews to determine whether the owners are doing what they say and whether there is sufficient collateral for the credit line or if a margin call is needed. 

Note:    Actual client names have been removed due to confidentiality issues.