NEW YORK, Nov. 30, 2023 /PRNewswire/ — The two companies last week announced the successful placement of an $85 million credit facility to a Utah based consumer goods business.
The borrowing company had over $400 million in top-line sales, with $70 million of accounts receivables, and $100 million in inventory. Company profits struggled as supply chain issues in 2020 and 2021 caused inventory shortages, and a spike in shipping costs. In 2023, the banking crisis eventually led to their primary lender calling their facility due.
With only a few weeks remaining to secure a refinance, the company sought more adaptable private credit financial solutions with non-bank lenders. This soon led to a partnership with Providence Capital Group, a Utah based private credit non-bank lender, and Oval Ventures, a Manhattan based private credit consulting firm.
Within two weeks, Providence Capital Group and Oval Ventures had a new term sheet issued by a Manhattan based lender for up to $120 million, and the Utah based company settled on an $85 million revolving credit facility. The rate for the facility stood fixed at SOFR +5.
“We are thrilled to provide ‘Wall Street’ level capital access to America’s business leaders in ‘Main Street’ communities. As always, it’s a pleasure to work alongside Oval Ventures and their highly successful credit team who simply get deals closed,” said Briton Hill, Managing Partner at Providence Capital Group.
“We had a fantastic experience collaborating with the Providence team, and we look forward to providing clients solutions to their working capital needs the near future. The bottom line is banks aren’t making it easy for businesses, but that’s where we come in,” said Joseph Grodko, CEO and Founder of Oval Ventures.
About Providence Capital Group:
Providence Capital Group is a Utah-based private credit lender specializing in short term, real estate backed loans. The Mountain West based lending group has closed and originated over $150 million in loans so far in 2023. Investors in the company have enjoyed distributions every quarter since its inception.
To learn more about Providence or to request information on becoming an investor, please contact:
[email protected] or visit www.providencecapitalgroup.com
About Oval Ventures:
Oval Ventures facilitates structured credit solutions from $500,000-$100 million+ toward working capital, growth capital, acquisitions & special situation financing. We understand the needs of entrepreneurs and their capital constraints in running a business. We work with companies in the lower and middle market across many industry verticals providing with a variety of debt solutions; asset-based and cash-flow based, senior secured and subordinated. We can tailor the loan as a line of credit or term debt depending on the companies needs.
For more information on Oval Ventures, please contact Joseph Grodko at [email protected] or visit www.ovalv.com.
SOURCE Oval Ventures, LLC
