Star Equity Holdings announced that its KBS Builders (“KBS”) business unit has closed a $4 million revolving line of credit with KeyBank. KBS intends to use the LOC to meet its working capital requirements and execute its business plan. The closing of this LOC provides both KBS and Star with financial flexibility to focus on their respective growth initiatives.
The LOC has an April 30, 2025 maturity date, which can be extended based on fulfillment of certain terms and conditions. Borrowings under the LOC will bear an interest rate of SOFR plus an applicable margin of 3.00%.
“We are pleased to announce the closing of this credit facility with KeyBank,” said David Noble, CFO of Star. “Star remains focused on providing growth capital to its operating companies in addition to preserving available cash for acquisitions. Star’s holding company structure offers its operating companies the ability to manage their own working capital needs, and this LOC gives KBS that flexibility. Partnering with a national bank of KeyBank’s prestige is a testament to the strength of the KBS business today and the remarkable transformation we have achieved since acquiring it in September 2019.”