SSG Capital Advises Cotton Holdings on its New Financing
Cotton Holdings announced it closed a new $13 million financing facility via a revolving line of credit of up to $10 million, with a letter of credit sub-facility of up to $3 million, and a capital expenditure facility of up to $3 million. Cotton Holdings was represented by SSG Capital Advisors as financial advisor and Paul Hastings as legal advisor.
The facility has a three-year term, with borrowings under the revolving credit facility and the capital expenditure facility bearing interest at Libor plus four percent and LIBOR plus 4.5 percent, respectively.
“This facility, following on our recent bond refinancing, represents another significant milestone for the Company in our continued efforts to reduce our cost of capital and increase our financial flexibility to meet the needs of our clients,” said Bryan Michalsky, chief financial officer.
Pete Bell, chief executive officer, added, “In addition to our existing capital base, this facility will provide the incremental funding to both further develop our industry-leading disaster remediation, construction and roofing businesses, as well as fuel the rapid growth of our temporary housing business, Cotton Logistics.”
Katy, TX-based Cotton Holdings provides restoration and construction services for commercial, industrial, marine, residential and institutional properties that have suffered catastrophic or other casualty loss as a result of, among other man-made and natural disasters, fires, earthquakes and hurricanes.