Alabama

$9.7MM Aerospace Parts Distributor Deal Funded - Porter Capital, Crossroads Financial, & Change Capital

BIRMINGHAM, Ala., July 21, 2021 /PRNewswire/ -- Porter's contribution comes alongside $2.5MM in Inventory Financing from Crossroads Financial, a $500K term loan from Change Capital, and $3.7MM from an SBA. 

The deal was first introduced to Porter through a broker, with the distributor looking to replace a bank's line of credit and buy out the existing private equity firm with an SBA Loan. After beating out a competing A/R lender for the deal, Porter brought in the other parties to produce enough liquidity to take out the senior debt and fill in a funding gap after the inventory appraisal came back short.

"By working with our trusted partners at Crossroads Financial and Change Capital, we were able to make this complex and time-sensitive transaction a success. Through our joint efforts, all parties were able to close on the same day," said Porter's SVP, Business Development Officer, Andy Dillard.

If not completed by a specific date, the transaction would have fallen apart as the minority owner would lose the option to purchase the company's shares at a favorable valuation. Luckily, all parties funded the $9.7MM requirement into an escrow account to be disbursed to the appropriate parties on the day of funding.

Today, the sole owner can focus on growing the company without honoring restrictive debt and equity covenants.

About Porter Capital:

Porter Capital Corporation was founded in 1991 by brothers Marc and Donald Porter in Birmingham, AL. Porter offers working-capital solutions to businesses all over the country in a variety of industries. As a direct lender and factoring company, Porter Capital has provided over $6 billion in funding since inception. Porter Capital offers Invoice Factoring and Asset Based Credit Lines up to $15MM. Since founding the company, Porter Capital has expanded to include a special transportation division known as Porter Freight Funding. The Porter businesses continue to grow by providing working-capital solutions, emphasizing personalized, dedicated customer service without sacrificing speed and efficiency.

To know more about Porter Capital Corporation and how it can be a working capital solution provider for businesses, call 1-800-737-7344 or visit its official website.

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SOURCE Porter Capital