First Capital Provides $6 Million Facility to Food Distributor
First Capital announced that it has provided a $6 million asset-based senior credit facility to a redistributor of quality food products. The senior credit facility is collateralized by accounts receivable and inventory.
First Capital was chosen to do the transaction because of its ability to provide the company with a new facility that refinanced the previous lender as well as the speed needed to close the facility. Proceeds will be used to support the company’s growth and working capital needs.
“The company had recently had a very costly acquisition that stressed its existing financing facility,” remarked John Nooney, MidSouth region manager for First Capital. “The existing lender was ending the lending relationship and the company needed to quickly find a new source of working capital that would provide more flexibility.”
This transaction was referred to Matt Simon and will be serviced by First Capital’s MidSouth region, managed by Nooney and located in Atlanta.
First Capital provides working capital financing ranging from $2 million to $15 million primarily to small and middle-market business owners with annual sales ranging from $10 million to $250 million.