1st Commercial Credit closes a merger and acquisition transaction for a metal fabricator using accounts receivable assets and equipment sale lease back.
Austin, TX -- (ReleaseWire) -- 04/23/2020 --1st Commercial Credit closes on an accounts receivable financing facility involving a merger and acquisition finance transaction of a metal fabricator. The factory specializes in metal forming using large hydraulic presses and manufactures industrial storage metal racks for several industries including military, tire, auto, agriculture and some construction applications.
The client (buyer) after being declined by another factoring company called us and asked if we can take over his request and help him complete the acquisition. We quickly gave the client a term sheet, no upfront fees to begin nor did we charge any fees after the funding. This was a very simple process since we have done several merger and acquisition deals like this in the past.
Our client already had a letter of intent with the seller and they entered into a Stock Purchase Agreement. There was a bank line of credit and equipment term loans to take out by paying off the bank. The transaction required an accounts receivable finance agreement to take out the accounts receivable balance. We obtained an equipment lease company to purchase the equipment under a sale lease back, pay off the bank on the equipment portion and create a new lease agreement with the updated new ownership. The seller agreed for the remaining balance to finance a note for the buyer to be paid over time and rented the property to the new ownership.
On April 2nd 2020, we received a complete application package and during all this Covid-19 situation with account debtor payables department working out of their homes, verifying invoices was not as simple task as before. Every day we made progress, and finally were able to close on the transaction on April 20th 2020 which normally would take 3 to 5 working days. Not too many lenders are funding during these unforeseen times.
1st Commercial Credit, compared to other factoring companies makes the funding process simple to understand and proceeds with underwriting criteria that is relevant to the transaction.
Contact 1st Commercial Credit if you have a merger and acquisition deal to fund, we have many resources and knowledge on how to get these deals done fast, and economical. 1 800 876 6071