Daily News: October 29, 2012

First Capital Provides $7MM to Lalani Steel

First Capital announced that it has provided a $7 million asset-based lending facility to Lalani Steel, a steel distributor and complete steel solution provider based in Fontana, CA. The credit facility is collateralized by the company’s accounts receivable and inventory.

First Capital was selected as the working capital partner based on its ability to structure a financing solution that provided additional working capital for the company to achieve its business strategy. The company needed a lender to provide a flexible financing package as it changed its business model in response to challenging global steel markets.

“Lalani Steel is known as a preferred supplier throughout the world in the steel market,” said Mark Orlando, vice president and business development officer. “First Capital was able to work with Lalani’s existing bank to structure a refinancing solution and provide the company with additional loan availability. We’re happy to be able to help the company successfully respond to the changing global market and look forward to a long beneficial financial relationship together with Lalani Steel.”

Iqbal Hemani, operating director of Lalani Steel stated, “We needed to find a lender that understood our business model and would support our growth plan. First Capital’s loan structure helped maximize the liquidity from our working capital assets. The First Capital team was able to provide the flexibility and terms we could not get from any other lender.”

This transaction was sourced by Mark Orlando and will be serviced by First Capital’s Western region located in Los Angeles, and managed by ABL Western region manager Matthew Grimes.