Cortland Credit Group repaid on an $8 million asset-based credit facility by its borrower, a regional chemical distribution company, on Sept. 10, 2024. The repayment took place approximately two years after the original funding._x000D_
_x000D_
Originally structured as a $5 million revolver plus $1.6 million term loan, the company activated accordions twice, in each instance increasing the revolver by $1 million as the company continued to grow._x000D_
_x000D_
Cortland’s facility refinanced the incumbent bank and provided growth capital for two related entities. The primary company is a regional chemical distributor to heavy industries in the Southeastern USA and US Gulf Coast. The related company is an industrial contractor and insulation company in the same region. Both are owned by a US-based private equity sponsor._x000D_
_x000D_
During the life of the credit facility, the company grew margins and improved coverage materially between 2023 through to Cortland’s payout. Repayment of Cortland was by a regional bank in the Southeastern USA. At the time of repayment, the borrower group had achieved Debt/EBITDA of 1.5x._x000D_
_x000D_
“The repayment of this credit facility highlights Cortland’s success in originating facilities with high growth companies, through our asset-based lending strategy, with tenors of 2-3 years,” Alex Preobrazenski, managing director and portfolio manager at Cortland, said.
Forward for Specialty Finance
