Robert Naglick, CFO

B&P - Background

• Located in Saginaw Michigan• Manufactures mixing, separating and compounding

equipment for the plastics, chemical and pharmaceutical industries.

• Equipment orders range in price from $125,000 to $2.5 million.

• Production cycles range from six to fourteen months.• B&P also sells replacement parts. Parts orders average

$50,000.• Annual Revenues total $30 million.• Approximately 50% of equipment and parts sales are

exported to Asia, Europe and Latin America.

Key Issues

• Need for additional working capital funding availability.

• Repayment risk associated with export sales and receivables.

• Export-related Work in Process inventory financing over six to fourteen month production cycle.

• Requirement to issue performance related standby letters of credit and bid bonds.

• A single export order can be significant to the balance sheet.

Solution• $5 million Export Line of Credit Agreement with JP Morgan Chase,

guaranteed by Export-Import Bank of the U.S.• B&P also has a separate $5 million domestic line of credit with JP Morgan

Chase.• B&P’s cost of Working Capital Guarantee Program – Annual fee is assessed

on the Export Line Facility.

Result• B&P has been able to achieve steady export growth.

Collateral Domestic Line Advance Rate Export Line Advance Rate

Accounts Receivable 80% 90%

Inventory – Raw material and WIP 50% 75%

Reserve for Standby L/C’s (100%) (25%)

Borrowing Base