Daily News: December 4, 2012

Graystone Capital Extends $700,000 A/R Credit Line


Graystone Capital announced it expanded its international lending capabilities by providing a $700,000 A/R joint working capital line of credit to related U.S. and Puerto Rican-based analytic testing firms. The lending arrangement is a borrowing-base oriented loan that includes an international borrower sub feature. The foreign borrower has enjoyed a long-term relationship servicing the pharmaceutical manufacturing industry that is highly concentrated in Puerto Rico.

“We are delighted to expand our international lending operations as it is our desire to support our prospective clients and our existing borrowers as they take advantage of international commerce opportunities as well as being a fully engaged proponent of emerging economies. International borrowers inherently have an additional dimension of complexity that makes for unique lending challenges. In this particular case we were able to tie the foreign exposure to a comfortable percentage of the overall borrowings and we also relied upon the strength of their customer base to structure the facility,” said Kevin O’Hare, CEO of Graystone Capital.

Graystone is often asked to underwrite foreign accounts receivable and depending on the circumstances it can deem certain foreign accounts as eligible collateral, the company said in a press release.

“In the past I have had borrowers in Canada, Mexico as well as in Asia, however, this is our first foray into Puerto Rico, our important neighbor and ally and I am hopeful it won’t be the last time,” remarked O’Hare.

Graystone Capital is a privately held commercial finance company that specializes in asset-based lending services designed to support the growth of American companies. The Technology Finance division targets small- to-medium cap emerging technology companies with venture debt and other early-stage debt financing.