PHILADELPHIA, PA--(Marketwired - July 19, 2016) - Phoenix Capital Resources, a leading middle market special situations investment bank, acted as the exclusive financial advisor and investment banker to Kalas Manufacturing, Inc. in arranging, structuring and negotiating a loan package of $33.6 million with Wells Fargo Bank. The financing package consists of a $25 million senior secured revolving credit facility, a term loan totaling $3.6 million secured by the Company's existing machinery and equipment, and a $5 million facility for future capital expenditures. The proceeds from the refinancing will be utilized to repay existing indebtedness, and to fund ongoing working capital needs and capital expenditure projects.
Headquartered in Lancaster, PA, Kalas is a vertically integrated manufacturer of bare and tinned copper wire, insulated electrical wire and cables, and custom cable assemblies. The Company was founded in 1958 and is a privately held family business that spans more than the three generations.
Wells Fargo Bank is a diversified, community-based financial services company. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
Phoenix Capital's efforts were spearheaded by Michael Jacoby, Senior Managing Director, and Kevin Barr, Vice President. "The strong interest in financing Kalas is a testament to its commitment to product innovation, its diversified customer base, its continued efforts in cost containment, and its demonstrated excellence in managing exposure to the recently volatile copper market. The Company had many refinancing options to choose from, but at the end of the day, the package provided by Wells was the most flexible and competitive," noted Michael Jacoby of Phoenix Capital. "We are delighted to be partnering with the team at Wells Fargo," noted Jack Witwer, Kalas' President and CEO. "They impressed us at every step during the diligence process with their thoughtful questions and creative approach."
Robert A. Kinne, Senior Vice President, Wells Fargo Capital Finance noted, "We are thankful to have been awarded this opportunity by Phoenix and Kalas. Underlying any successful deal execution, as was the case here, is a solid underlying company, high quality management throughout, and extremely facilitative advisors (Phoenix). We are confident that this well-choreographed closing process has established a strong customer relationship for the long haul."
For over 30 years, Phoenix has provided smarter, operationally focused solutions for middle market companies in transition. Phoenix Management Services® provides turnaround, crisis and interim management, specialized advisory and operational implementation services for both distressed and growth oriented companies. Phoenix Transaction Advisory Services® provides quality of earnings, management/organizational review, business integration, sell-side business preparation and other transaction related support. Phoenix Capital Resources® provides seamless investment banking solutions including M&A advisory, complex restructurings and capital placements. Phoenix Capital Resources is a U.S. registered broker-dealer and member of FINRA and SIPC. Proven. Results.®
If you would like to learn more about Phoenix, please visit http://www.phoenixmanagement.com/, http://www.phoenixcapitalresources.com/ or http://www.phoenixmanagement.com/phoenix-transaction-advisory-services/overview