Daily News: February 27, 2012

Black Castle Developments Secures $50 Million Asset-Based Facility

Black Castle Developments Holdings, Inc. (BCDH), a holding company targeting the acquisition of undervalued, niche companies, announced that it has secured a line of credit totaling $50 million over a five-year period with an asset-based senior credit facility. Under the terms of the agreement, BCDH can draw down a maximum of $6 million in the first year, with the revolver collateralized by real estate assets.

Jeff Holroyd, president and CEO of BCDH, stated, “We are very pleased to have formed a highly valuable business relationship with this facility. There is no requirement for BCDH to issue stock or warrants to secure this arrangement, which protects our shareholders from any potential dilution. We anticipate that this revolving line of credit will support our working capital need, but, moreover, will allow us to quickly close on real estate transactions that remain very attractive because they have discounted pricing and upside potential. We are thrilled to turn a significant corner in our business model with this financing.”

Holroyd added, “BCDH was looking for a financing solution that would offer greater liquidity and accelerate a strategic turnaround. The premier credit facility we found is one of the largest independent, asset-based working capital lenders in our local area. While we will continue to pursue multiple financing solutions, we are off to a great start.”

Black Castle Developments Holdings, Inc. is a holding company focused on the merger and acquisition of undervalued, revenue-generating companies that operate in high-growth niche markets.