Daily News: March 19, 2012

First Capital Provides $7 Million ABL Facility to Samtex Fabrics


First Capital announced that it has provided a $7 million asset-based lending facility to Samtex Fabrics, Inc., a wholesaler of fabrics to the apparel industry. The credit facility is in the form of a factoring agreement and is collateralized by the client’s accounts receivable and inventory.

First Capital was selected as the working capital partner based on its ability to tailor a financing solution to the company’s need for a facility that allowed additional working capital based on the company’s inventory. Proceeds will be used to build up additional inventory in order to meet high demand from customers.

Ron Garber, executive vice president and First Capital Western region manager stated, “First Capital was introduced to Samtex by their attorney who was seeking a more flexible financing solution for his client. The company’s existing capital facility at that time was inhibiting its ability to grow and expand both their vendor and customer base. A dedicated and experienced First Capital team, working along with the company’s professional advisors, crafted an innovative re-structuring, which resulted in tripling Samtex’s current credit facilities. According to management they are now in a position to approach the market confidently with an optimistic expectation of achieving their growth projections for the foreseeable future.”

“With this new facility we will be able to better handle our customers’ requests in both quality and quantity of orders,” remarked Sam Kachan, President for Samtex. “The new facility will not only provide the additional capacity for growth with the ability to adapt as our needs change, but will also allow us to streamline our distribution channels to improve our vendor relationships and increase our customer base.”

This transaction was sourced by Jason Carmona and will be serviced by First Capital’s Western region located in Los Angeles, and managed by Garber and Western region ABL manager Matthew Grimes.

First Capital provides working capital financing typically ranging from $2 million to $15 million primarily to small- and middle-market entrepreneurs with annual sales ranging from $10 million to $200 million.