Great American Secures $35 Million Credit FacilityTuesday, February 4, 2014
GA Capital, a division of Great American Group Inc., said Tuesday it closed a $35 million financing facility for its client Reichhold, a chemical manufacturer.
Great American in Woodland Hills liquidates inventory and equipment after bankruptcies, while its GA Capital subsidiary handles financing for distressed companies. It obtained a $22.5 million loan and a $12.5 million revolving credit line for Reichhold.
“We are excited to complete this transaction as it demonstrates our ability to provide customized capital solutions to customers in both the industrial and international markets,” said GA Capital President Stuart Armstrong in a statement.
Reichhold, in Durham, N.C., is a large maker of polyester and vinyl resins that has run into financial problems. In 2012, it missed an interest payment on a $195 million note and suffered a credit downgrade from Standard & Poor’s.
Shares of Great American closed unchanged at 26 cents, as no trades have occurred since Feb. 3 for the over-the-counter stock.