Daily News: November 13, 2012

Concord Advises Elite Companies in Closing New Facilities

Concord Financial Advisors announced it served as exclusive financial advisor to Elite Companies in the closing of $9.865 million in senior secured credit facilities, consisting of a $5 million revolving line of credit, a $2.365 million letter of credit to support an IRB, a $1.5 million term loan and a $1 million CAPEX line of credit.

The specialty metal fabricator had multiple credit facilities with a bank that was taken over in an FDIC-assisted transaction and the acquiring bank did not want to continue the relationship. The company had been affected by the economic downturn but still had a very strong balance sheet, ample collateral coverage and had regained profitability. The company had been seeking a new banking relationship on its own but was not satisfied with the proposals that were being offered.

After being introduced to the company, Concord’s assessment of the situation was that the company was strong, under solid management and able to support a much larger credit facility than was currently in place. The company subsequently retained Concord to search for and secure a long-term banking relationship with a new institution.

Concord created a detailed memorandum featuring the company’s strong balance sheet and ample collateral coverage, along with its plan to maintain and grow profitability and cash flow. After conducting a targeted search process to local, regional and national commercial banks, Concord secured a commercial banking proposal that met the company’s objectives. Despite the significant complexities involved in the transaction due to the existence of an Industrial Revenue Bond, the deal closed in approximately 120 days.

Proceeds will be used to refinance existing debt and support working capital.

Elite Companies is a manufacturer of precision steel metal, fabricated components and assemblies based in Illinois.

Concord Financial Advisors is a financial intermediary specializing in private placements of senior debt and subordinated debt/mezzanine financing for middle-market companies.