First Capital Provides $7.75 Million to Butler Johnson
First Capital announced that it has provided a $7.75 million asset-based lending facility to Butler Johnson Corporation, a distributor of premium surfacing solutions. The senior credit facility consists of a $7 million working capital revolver collateralized by accounts receivable and inventory and a term loan in the amount of $750,000.
First Capital was selected as the working capital partner based on its ability to quickly structure a financing solution that would increase working capital to allow the company to expand its products and customer base for growth in revenues and profitability. Butler Johnson has a long history distributing surface and flooring products throughout Northern California and areas of Nevada for over 50 years.
Mark Orlando, vice president and business development officer, stated, “Butler Johnson is a great example of the kind of company First Capital can help by providing a customized financial solution. The company and management team were very responsive which enabled us to fund the loan within 60 days. We are excited to develop a financing partnership which will allow the company with such a rich history in California to expand its business.”
“The First Capital team was a pleasure to work with in terms of their responsiveness and ability to create a financing package that would meet our strategic initiatives,” remarked Rolston Johnson, CEO for Butler Johnson. “By working with an independent lender, we were able to receive the creative structuring that best fit our company and was tailored to our specific needs. By providing additional availability of capital and flexibility in terms, First Capital will help our company achieve its growth strategy. “
This transaction was sourced by Orlando and will be serviced by First Capital’s Western region located in Los Angeles, and managed by region manager Ron Garber and Western region ABL manager Matthew Grimes.
First Capital provides working capital financing typically ranging from $3 million to $20 million primarily to small- and middle-market entrepreneurs with annual sales ranging from $10 million to $200 million.