Daily News: February 8, 2018

Austin Financial Closes $2MM ABL Facility for Food Processor

Austin Financial Services closed a $2 million senior secured ABL facility for a West Coast-based food processing company that provides pasta, grain and rice-based ingredients for manufacturers in the U.S. and Canada.

The company needed to refinance its existing credit facility and wanted a partner with greater flexibility to provide better working capital support for its ongoing operations and for future growth.

AFS’s ABL structure included an accounts receivable and inventory revolver with a $500,000 CAPEX equipment term loan. Funds from the credit line were used to pay off existing bank obligations and to support new business opportunities.

“The company’s existing bank lender was limiting their availability by suppressing their A/R and inventory assets and not providing enough availability against existing equipment or future equipment purchases,” said Jason Anish, CEO of AFS. “This new structure will allow the company to ramp up work on the backlog of projects in its pipeline and facilitate their ability to bid on new projects and grow the business.”