First Capital Provides $5.5 Million ABL to Skiing Equipment Maker
Wednesday, June 29, 2011
First Capital provided a $5.5 million asset-based lending facility to a Northeast-based skiing equipment manufacturer and distributor. The credit facility consists of a $5.5 million revolver collateralized by accounts receivable and inventory.
First Capital was chosen to do the transaction because of its ability to provide the client with a structuring solution that led to increased liquidity. The credit facility provides working capital needed to meet seasonal needs.
Jacen Dinoff, chief restructuring officer for the company and managing principal of KCP Advisory, a turnaround and financial management advisory firm, remarked, "First Capital did a great job of working with the management team to find which assets could be leveraged to get the maximum working capital."
"Not only was the company able to refinance existing lines and reduce borrowing costs, it was also able to expand borrowing capacity. The company is using the additional working capital to prepare for the coming season," remarked John Tyson, business development officer for First Capital in the Northeast region.
Kevin McGarry, executive vice president and Northeast regional manager for First Capital said, "As a privately owned non-bank provider of capital, First Capital is able to offer more flexibility in structuring and meeting the needs of our clients."
This transaction was referred to John Tyson and will be serviced by First Capital's Northeast region, managed by Kevin McGarry and located in New York City.