NewStar Provides $12.5MM for Fastener Distribution Acquisition
NewStar Business Credit, a wholly owned subsidiary of NewStar Financial, Inc., announced that it has provided $12.5 million of senior secured financing to support the acquisition of Fastener Distribution and Marketing Company (FDMC) by Precision Aerospace Components.
Both companies are distributors of specialty and commodity fasteners to the aerospace and nuclear industries with distribution centers in Staten Island, NY and Bensalem, PA.
The credit facilities consisted of an asset-based, revolving line of credit and term loan, as well as, a senior, secured “stretch” loan. Proceeds from the financing were used to fund the acquisition of FDMC and will also provide support for ongoing working capital requirements.
“This was a great opportunity for Precision to expand its capabilities. We are pleased with the opportunity to finance the acquisition and provide continuing support for growth,” NewStar EVP Milton Iskra stated. Nina Fairchild, an SVP in NewStar’s Philadelphia office, originated the transaction.
“It has been an exceptionally good experience to deal with all of the folks at NewStar. They have reacted quickly, rapidly understood our needs and facilitated our activities. NewStar has enabled a pressure packed, potentially high-stress process to proceed as smoothly and efficiently as possible. From initial meeting, through negotiation, diligence, funding and beyond, every aspect of their operation has been conducted with the utmost professionalism. Perhaps as importantly, their responsiveness has continued beyond the closing of the funding. We could not be more pleased,” commented Andrew Prince MBA-JD, president and CEO of Precision Aerospace Components, Inc.
NewStar Business Credit provides asset-based and senior, secured “stretch” loans nationally to middle-market companies with credit requirements between $5 million and $25 million.