Daily News: October 9, 2013

First Capital Provides Facility to Auto Parts Distributor

First Capital announced it provided an $18 million working capital facility to an auto parts distributor. The senior credit facility consists of an $18 million working capital revolver collateralized by accounts receivable and inventory.

First Capital was selected as the working capital partner based on its willingness to provide working capital with a flexible loan structure while the company works on its turnaround strategy. The company has been working with Huron Consulting Group to complete its transition.

“The company is in the process of implementing a new strategy to handle the recent recession in the auto industry,” stated Nick McDearis, business development officer. “We took a good look at the company’s management and their growth plan and feel they are in a good place for a full recovery.”

“We needed to find a lender that would be able to provide the flexible financing the company needed to carry out their plans,” stated David Bitterman, managing director at Huron Consulting Group. “The First Capital team worked hard to understand our client’s business and how to best create a new loan package that would handle the company’s current and future working capital needs.”

This transaction was referred to Nick McDearis and will be serviced by First Capital’s ABL Eastern Region.