Broadwind Energy, Inc. (NASDAQ: BWEN) has announced it has closed on a $20 million credit facility with AloStar Business Credit of Birmingham, Alabama. Under the terms of the credit arrangement, Broadwind will have access to up to $20 million based on a borrowing base secured by eligible trade receivables and inventories. The credit facility has a three-year term, with an interest rate of 30-day LIBOR plus 4.25%, with a 1.0% LIBOR floor. The terms of the credit facility include financial and other covenants typical for asset-based loans of this kind. The loan is also secured by certain of the Company’s fixed and other assets.
The Company used the proceeds of the new credit facility to refinance two existing credit facilities and certain other debt, as well as to pay fees and expenses related to the new credit facility.
“This asset-based credit facility is a significant milestone for Broadwind that largely completes one of the three initiatives of our business transformation strategy. Reflecting the solid progress we have made toward diversifying partially out of wind energy into industrial sectors, lowering the company’s cost base and establishing sustainable cash flow generation, it is also indicative of our strengthened creditworthiness and business model maturation. With a credit structure suitable to our operational dynamics, we now have greater financial flexibility to support our working capital needs as we grow,” said Peter C. Duprey, president and chief executive officer. “AloStar Business Credit, with its expertise in asset-based lending, is the ideal partner for us and we look forward to forging a strong lending relationship with them.”
Roswell Capital Securities, LLC served as agent on this transaction.