Austin Financial Services provided a $5 million revolving credit facility to LED lighting company Energy Focus.
Borrowings under the facility are limited to a borrowing base requirement based on 85% of eligible receivables, plus available inventory (to a maximum of $500,000 for the inventory portion). The facility is a three-year agreement, secured by a lien on domestic assets and expiring on December 31, 2021, unless terminated sooner.
“Our new credit facility provides us with greater financial flexibility to fund our operations and to support our turnaround objectives,” said Jerry Turin, Energy Focus chief financial officer.
Headquartered in Solon, OH, Energy Focus is the creator of the first UL-verified, flicker-free LED lights and a manufacturer of energy-efficient LED lighting technology. Its products provide extensive energy and maintenance savings over conventional lighting, along with safety, health and productivity benefits.
Headquartered in Los Angeles, Austin Financial Services is a privately- held, middle-market lender which provides alternative funding in the form of fast and flexible lines of credit to small- and medium-sized businesses.
