Daily News: May 30, 2019

Gibraltar Closes $3.5MM L/C for Chief Supply


Gibraltar Business Capital closed a $3.5 million line of credit for Chief Supply, headquartered in Charlotte, NC.

Chief Supply is a national distributor of public safety products, equipment and services sold to police, fire, EMS, private security, military and individual enthusiast customers. Founded in 1977, Chief Supply offers six product families including duty gear, uniforms, emergency equipment, turn-out (fire) gear, body armor and traffic safety products, selling directly to municipalities and branches of the federal government.

Prophet Equity, a private equity group that is also a majority owner of the company, referred the transaction. Chief Supply needed working capital to support its transition through a restructuring aimed at increasing profitability and growth. Gibraltar was able to use Chief Supply’s accounts receivable and inventory to build a robust asset-based line of credit.

The $3.5 million ABL facility also includes an unsecured over-advance, which increased the balance beyond the amount supported by the borrowing base.