Amalgamated Capital Provides Financing to Klochko Equipment Rental
Amalgamated Capital (AmalCap), the New York-based leveraged finance division of Amalgamated Bank, announced that it recently closed an asset-based financing arrangement with Klochko Equipment Rental Company, based in the Detroit suburb of Melvindale, MI. The amount of the financing was not disclosed.
Klochko provides rental equipment to commercial, industrial, mining, shipping and construction companies that is typically used in demolition, site work, materials handling, excavation, and grading.
“As a national lender committed to working with businesses in the under-served lower middle market, Klochko is precisely the type of company we want to help get to the next level,” said Robert Love, executive vice president and head of Amalgamated Capital. “It is one of few remaining family-owned businesses of its type – a solid, well-managed company with a 60-year track record of successfully serving an important regional market and a company that, despite competition from larger national rental companies, was able to remain profitable during the recession.”
“Klochko was looking for a straight refinancing of an existing credit facility,” said AmalCap first vice president Frank Marsicano. “We went the extra step and created a financing package that included a three-year asset-based term loan coupled with a revolving line of credit, which provides both the flexibility and the capital to fund future growth.”
“This financing provides the liquidity needed to support the continued expansion of our business,” said Robert Klochko, president of Klochko Equipment Rental Company. “With the additional resources provided by Amalgamated Capital’s financing, we were immediately able to go out and obtain a very favorable discount on an equipment purchase we had been targeting for some time.”
AmalCap provides asset-based financing to individual companies as well as cash flow-based senior secured financing to support investments made by private equity sponsors in high quality, lower middle-market companies across the United States.