Accord Financial closed a $13 million credit facility to support the acquisition of an equipment services company. Accord’s asset-based lending group structured the facility to include a traditional revolving credit package backed by accounts receivable and inventory as well as a term loan supported by equipment.
“This transaction reflects Accord’s ability to support not only the organic growth of our customers, but also their acquisition opportunities,” Jim Hogan, president of U.S. commercial finance at Accord Financial, said. “Our ability to structure facilities that fully leverage the current and fixed assets of the company, including a significant term loan supported by equipment, was a key ingredient in this transaction. It also reflects our strong commitment to independent owners and sponsors operating in the lower middle market.”
Accord’s lending relationship with this customer began less than two years ago with the closing of a $4.5 million refinance of an incumbent lender. Subsequently, Accord increased the facility to $7 million with the addition of a new term loan. Under this newest facility, Accord increased and renewed the term loan with the support of the acquired assets.
