BETHESDA, Md., May 19 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it has committed $300 million to Core Business Credit, a newly-formed commercial finance company that will provide asset-based financing to middle market companies nationally.
American Capital's investment takes the form of subordinated debt and equity.
In addition, Core has secured a $125 million senior credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. This makes Core's total committed capitalization in excess of $425 million.
"In the current environment, middle market companies need access to capital and Core will provide an attractive solution," said Bob Grunewald, Managing Director, American Capital Financial Services Group. "Core will be a unique combination of a national lender with a broad product offering, yet high-level customer service and access to senior management."
Based in Dallas, Core plans predominately to make asset-based loans secured by accounts receivable, inventory, equipment and owner-occupied real estate.
This is another way to get capital for your business. It just goes to show you that even in this "credit" crunch that their are compaines that are giving business credit. Now this is asset based lending which is different than unsecured Business Lines of credit that I teach about, but this goes to show you that this industry is not stopping the flow of money to companies.
What do you think, love to hear from you?
Pat Gage
www.10stepstomoney.com
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