Chicago, IL – November 16, 2016 – Encina Business Credit, LLC (EBC) announced today that it has provided a $31.5 million senior secured credit facility to Katy Industries, Inc. (Katy) and its wholly-owned subsidiary, Continental Commercial Products, LLC. The financing, which is comprised of a revolving line of credit and two term loans, will be used to refinance the company’s existing senior credit facility and to provide working capital for growth. Based in St. Louis, Katy is a leading manufacturer, importer and distributor of commercial cleaning and consumer storage products.
Launched in March 2016, EBC is an independent asset-based lending platform targeting middle-market borrowers in the U.S. and Canada that cannot obtain required financing from traditional banks. The firm provides revolving lines of credit and term loans ranging in size from $5 – $50 million and secured by accounts receivable, inventory, machinery & equipment and real estate. The platform lends to both privately-owned (sponsor and non-sponsor) and publicly-traded companies across a wide range of industries, including manufacturing, retail, automotive, oil & gas, services, distribution and consumer products. Borrowers use loan proceeds to fund working capital, acquisitions, refinancings, growth, restructurings/turnarounds, debtor-in-possession (DIP)/exit financings and other special situations. Positive cash flow is not a requirement.