Concord Financial Advisors closed a $9.6 million transaction for the AMS Group that included a $7 million revolving line of credit, a $1.6 million equipment term loan, a $750,000 CapEx line of credit and a $250,000 advance term loan.
AMS Group is the parent company of three wholly owned subsidiary companies: National Tool & Manufacturing, Champion Steel and Champion Strapping Products.
In early 2017, the company’s bank determined that AMS was no longer a suitable fit for their portfolio and asked them to secure a new lender.
Initially, AMS Group searched for a new financing partner on its own. It met with multiple lenders but received no attractive offers. The incumbent bank recommended that the company utilize Concord’s debt placement services to secure a new lender.
After completing due diligence, Concord screened and qualified several lenders it knew to be appropriate for the client, at no cost. The company wanted to work with a regional bank, and Concord was able to leverage its relationship with a Chicago-based bank that was equipped to handle all of the loans requested and all of the cash management and treasury services for AMS. The bank liked the experience and expertise of the company’s ownership/management team and was impressed by its customer base, core business model and recent performance improvements.
Concord’s efficient and competitive process resulted in favorable interest rates, deal structure and overall terms for AMS. The new financing through the bank provided AMS with the additional liquidity it needed for working capital and to finance growth.
