Gibraltar Business Capital continues its success building relationships with private equity groups by closing a $3.5 million line of credit for Chief Supply, headquartered in Charlotte, N.C.
National Distributor Seeks the Next Level of Growth
Chief Supply Corporation is a national distributor of public safety products, equipment and services sold to police, fire, EMS, private security, military and individual enthusiast customers.
Founded in 1977, Chief Supply offers six product families including duty gear, uniforms, emergency equipment, turn-out (fire) gear, body armor and traffic safety products, selling directly to municipalities and branches of the federal government.
This transaction was referred by a private equity group that is also a majority owner of the company, Prophet Equity. Prophet Equity invests in strategically viable, asset-intensive middle market companies with significant value creation potential. In the case of Chief Supply, the portfolio company needed working capital to support its transition through a restructuring aimed at increasing profitability and growth.
Borrowing-Base Creativity Supports Restructuring Transition
Innovative and flexible in determining a borrowing base, Gibraltar was able to use Chief Supply’s accounts receivable and inventory to build a robust asset-based line of credit.
The provided $3.5 million ABL facility also includes an unsecured over-advance which increased the balance beyond the amount supported by the borrowing base. As a specialty financing company with more flexibility than a traditional bank lender, Gibraltar is able to use its experience and resources creatively to meet the needs of a company in transition.
Gibraltar Values Preferred Lender Status With Financial Sponsors
In addition to its entrepreneurial approach to credit structuring, Gibraltar has become a preferred lender in structuring deals like this one through flexible responses to the unique needs of portfolio companies; the availability of its decision-makers for high-level input and quick approvals; ability to take unique circumstances into account; and best-in-class service. Our experienced sales team can provide more information.