NewStar Business Credit, a wholly-owned subsidiary of NewStar Financial, announced that it has provided a $40 million senior secured credit facility to General Insulation Company (GIC), a Boston-based distributor of commercial and industrial insulation, HVAC and fire stop products, and related accessories including gaskets and tapes. GIC serves a wide range of contractors, OEMs, and supply houses throughout North America. Proceeds from the new financing will be used to provide working capital and for general corporate purposes including funding future growth. NewStar syndicated a portion of the credit facilities to BBVA Compass.
“The team at NewStar took the time to understand our business, as well as our long standing relationships with vendors and customers who have supported us for many decades,” said Frank Granara, president of General Insulation Company. “That understanding allowed them to tailor the structure of the credit facility to meet our unique needs.”
Margie Kaufman, managing director with Getzler Henrich & Associates, served as a financial advisor to the company and commented that, “NewStar responded quickly and delivered a comprehensive financing solution to the company, including a lending syndicate to support potential future needs.”
“We are pleased to be partnering with Frank Granara and his experienced team of managers at General Insulation Company,” said John Rossi, senior vice president at NewStar.
Milton Iskra, NewStar EVP added, “This was a great opportunity for us to build on our growing presence in the New England market and demonstrate the value of our syndication capabilities.”
NewStar Business Credit provides asset-based and senior secured “stretch” loans nationally to middle market companies with credit requirements between $5 million and $25 million, with the ability to syndicate larger loans. Deal structures are flexible and tailored to meet client’s unique needs. Funds can be used for a wide range of purposes, including strategic acquisitions, management buyouts, recapitalizations and refinancings, as well as, to support internal growth strategies.