Pinnacle Capital Finance issued a $5 million combination asset-based accounts receivable and inventory line of credit along with a variety of term loans to a 100-year-old die casting company, which is using the line of credit to fund operations and the term loans, which total half the amount of the entire credit facility, as acquisition funding to complete the sale of the business.
The Pinnacle Capital Finance term loans were underwritten as separate and distinct facilities, with one based upon the underlying equipment value of the target company and another on the historical cash flow of the business. In addition, Pinnacle Capital Finance provided a third $800,000 capex line of credit for the business to purchase new machinery in an effort to modernize its plant and operations.
“We were impressed with the new ownership team and their vision for the growth of this old-line foundry,” Kevin O’Hare, president of the Pinnacle Capital Finance, said. “It was especially gratifying to support the successfully transition of this venerable company, located in the heart of America, while preserving their employment roll and their overall positive impact on the local economy. All of which were important conditions to the seller.”
