First Capital Provides $8 Million ABL to Brady Distributing
First Capital announced that it has provided an $8 million asset-based senior credit facility to Brady Distributing Co., a distributor and supplier of arcade and vending machines. The senior credit facility is collateralized by accounts receivable and inventory.
In addition to refinancing the previous lender, proceeds will be used to support the company’s growth and working capital needs. First Capital was chosen to do the transaction because of its ability to provide Brady Distributing with the flexibility needed for continued growth as well as the speed needed to close the facility.
“Even though the company has been in business for over 65 years, a new growth strategy required additional capital,” remarked Dick Robberts, a consultant with National Commercial Enterprises. “We were impressed with First Capital’s ability to not only tailor a structure that fits Brady’s financing needs, but also able to complete the transaction within 30 days.”
“Brady Distributing has a great history of machine sales, distribution and service in the U.S. and also internationally,” remarked David Koran, vice president and business development officer with First Growth Capital. “We were happy to work with the team at Brady and be able to provide a financing solution that will fund their working capital needs.”
This transaction was referred to Koran by Robberts and will be serviced by First Capital’s MidSouth region managed by John Nooney and located in Atlanta.
First Capital provides working capital financing ranging from $3 million to $20 million primarily to small- and middle-market business owners with annual sales ranging from $10 million to $200 million.