Commercial finance company First Capital announced it has provided a $16.25 million asset-based senior credit facility to a manufacturer of uniforms and other work apparel.
The senior credit facility consists of a $15 million working capital revolver collateralized by accounts receivable and inventory, and a term loan in the amount of $1.25 million collateralized by real estate and machinery and equipment.
The company said the transaction was sourced by Mark Pickering and will be serviced by First Capital’s Eastern Region, managed by John Nooney and located in Atlanta, GA.
First Capital said the company faced financial and operational hurdles due to the recession and changes in customers’ purchasing practices. As a result, the company needed to restructure their financing facilities to align with restructured business operations. First Capital was selected as the working capital partner based on its ability to create a flexible structure that would replace previous financing commitments and allow the company to capitalize on market opportunities.