Daily News: September 11, 2017

Allied Affiliated Closes Two Transactions Totaling $12.5MM

Allied Affiliated Funding closed two transactions for a total of $12.5 million.

The first transaction was a $7.5 million bridge accounts receivable facility to a Texas-based telecom company providing turnkey, broadband solutions for large cable companies. The company had been financed by another factoring company, and its contract was coming up for renewal at the same time it was looking to sell the business. Management didn’t want to get ‘stuck’ in a long-term contract if it only needed 30 days or less in funding. The company was seeking a financial bridge to take it through completion of the sale. With only a week before the auto renewal with its current factor, the company reached out to Allied to help. In less than a week, Allied was able to underwrite, close and fund the transaction that met its working capital needs until it could sell the business.

The second transaction was a $5 million accounts receivable, inventory and equipment loan facility to a Northeast-based company offering commercial printing, data processing, personalizing and mailing services. The company was looking to purchase the assets of other print, mail and sorting businesses through an Article IX sale to help expand its existing business operations and geographic footprint. Allied was able to provide the purchaser an accounts receivable factoring facility with a net funds employed fee to help it maximize the cost of funds and usage under the line, along with a small inventory loan and two equipment loans.