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First Capital Provides $8.3MM ABL Facility To Dan-Loc

May 06, 2014, 07:13 AM
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First Capital announced that it has provided an $8.3 million asset-based senior credit facility to Dan-Loc, LLC d/b/a Dan-Loc Bolt & Gasket, a leading U.S. manufacturer and distributor of superior quality stud bolts and metal gaskets used in energy and industrial segments. The senior credit facility consists of a $7.5 million working capital revolver collateralized by accounts receivable and inventory and an $800,000 term loan collateralized by machinery and equipment.

Dan-Loc faced financial and operational hurdles due to the recession and needed to refinance their existing lender.  Dan-Loc has also been restructuring its business to concentrate on the high-quality products it has become known for rather than lower-end commodity product lines. First Capital was selected as the working capital partner based on its ability to create a flexible structure that would allow for additional liquidity and growth.

“We are happy that First Capital could see the value in both our product and growth strategy,” stated Thomas Connolly, President and CEO of Dan-Loc. “We have always manufactured a top quality product and needed a lender that could understand our position in the market.”

Keven Shanahan, Partner at Argosy Partner, the majority Private Equity Group investor of Dan-Loc, indicated, “First Capital was responsive and showed flexibility throughout the process while working on the best solution for us and Dan-Loc.  We are happy to have First Capital supporting our portfolio company and look forward to working with them on future opportunities.”

This transaction was sourced by Calvin Navatto and will be serviced by First Capital’s Eastern Region, managed by John Nooney and located in Atlanta, Georgia.

First Capital provides customized and timely working capital financing solutions primarily to small and middle-market companies engaged mainly in manufacturing, distributing and business services with annual sales greater than $10 million. Lines of credit are in the form of asset-based loans, factoring or invoice purchasing arrangements ranging from $200,000 to $25 million.  Originally formed in 1988, First Capital is one of the largest independent asset-based working capital lenders in the country.  Headquartered in New York City, the firm has additional offices in Atlanta, Boynton Beach, Chicago, Dallas, Los Angeles, and Oklahoma City with regional sales offices located across the United States.

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