Graystone Capital Structures a $4.5 Million Credit Facility
Through its Technology Finance division, Graystone Capital structured a $4.5 million off-balance sheet credit facility for a Silicon Valley-based company. The funding mechanism was designed to meet the requirements for a true sale in order to facilitate the intellectual property transfer of the company.
Kevin O’Hare, CEO of Graystone, remarked: “Our prospective client was in need of a creative form of funding that would allow for a nine figure cash transfer of their company, exclusive of its open accounts receivable. The transaction was challenging in that it needed to meet the specific tax and accounting constraints established for a true sale as well as it being a short term facility. It also required us to structure the deal contemplating both the potential for the transfer to fall through and the possible need for a longer term facility to fund our prospect’s lumpy and highly concentrated accounts receivable.”
Graystone Capital provides a variety of credit facilities via its Technology Finance division, some of which are interim and/or bridge oriented in nature. “In this case I was able to draw upon my FASB 125 off-balance sheet experience having been fortunate to provide several of these transactions through the years, while servicing my public company technology clientele. Graystone