First Capital announces credit facility with Simon Metals

Simon Metals LLC, a scrap metal company headquartered in Tacoma, Washington, has landed a $4.5 million asset-based credit facility from First Capital, a national commercial finance company headquartered in New York City. The credit facility is in the form of asset-based loans and factoring arrangements.

Chris McKernan, vice president at First Capital, says the scrap metal company fit the midmarket industrial profile that his financial investment firm targets. The senior credit facility consists of $4 million in a working capital revolver secured by accounts receivable and inventory, as well as a $500,000 term loan collateralized by machinery and equipment.

First Capital says Simon Metals’ owner, the private equity firm Graham Capital Group LLC, picked the finance company because it was able to refinance Simon Metals’ previous lender, while creating a flexibility facility that maximized the liquidity of the company’s assets. The proceeds will be used for completing a realignment of the company’s operations and for working capital needs.

“First Capital provided much needed funding for our business as it faces significant short-term challenges in the face of the West Coast port slowdown,” says Paul Raidna, managing director of Graham Capital Group. “With the greater availability First Capital is offering, we will be able to continue on our growth plan and handle fluctuating commodity prices.”

McKernan adds, “We are delighted to partner with Simon Metals, a company with a rich and long tradition of providing excellent service and innovative methods in an environmentally conscious manner.”