Wells Fargo Provides New $15MM ABL to ISA
Industrial Services of America (ISA) announced a $3 million equity investment from Recycling Capital Partners and a $17.8 million credit facility from Wells Fargo Bank.
ISA said the new credit facility includes a $15 million revolving line of credit and a $2.8 million equipment term loan. The new credit facility replaces the company’s existing loan with Fifth Third Bank at a significantly lower interest cost, reduced fees and more accommodating financial covenants.
The revolver bears interest an annual rate of LIBOR plus 3.00%, and the equipment loan bears interest at LIBOR plus 3.25%. ISA may borrow up to 85% of the value of its eligible accounts receivable and 65% of the value of eligible inventory, offering incremental availability relative to the Fifth Third revolver. Both loans mature five years from the closing date, with the term loan amortizing ratably over the next 60 months.
“We couldn’t be happier with the outcome of our financing efforts,” said Orson Oliver, chairman of the board and interim CEO of ISA. “We entertained proposals from several well-known lenders and equity investors, but thought the strategic fit of RCP and the creative approach of Wells Fargo distinguished these partners in our search. We are extremely pleased to know that ISA is on sound financial footing and capitalized for future growth.”
Louisville, KY-based Industrial Services of America is a publicly traded company whose core business is buying, processing and marketing scrap metals and recyclable materials for domestic users and export markets.