First Capital Provides Simon Metals ABL Facility
First Capital provided a $4.5 million asset-based credit facility to Simon Metals, a scrap metal recycling service provider located in the Pacific Northwest. The senior credit facility consists of a $4 million working capital revolver secured by accounts receivable and inventory and a $500,000 term loan collateralized by machinery and equipment.
First Capital was selected by the management of Graham Capital Group, the equity owner of Simon Metals, to provide the credit facility because of First Capital’s ability to refinance the previous lender while creating a flexible facility that maximized the liquidity of the company’s assets. The proceeds will be used for completing a realignment of the company’s operations and for working capital needs.
“First Capital provided much needed funding for our business as it faces significant short-term challenges in the face of the West Coast Port Slowdown,” stated Paul Raidna, managing director of Graham Capital Group, LLC. “With the greater availability First Capital is offering, we will be able to continue on our growth plan and handle fluctuating commodity prices.”
“We are delighted to partner with Simon Metals, a company with a rich and long tradition of providing excellent service and innovative methods in an environmentally conscious manner,” said Chris McKernan, vice president at First Capital.