STCC News October 10, 2013
Sterling Consolidated Secures $2.45 Million Senior Bank Debt
Sterling Consolidated Corp. (OTCBB:STCC) (the "Company"), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today announced it has secured a $2.45 million senior secured note from Customers Bancorp, Inc. (Nasdaq:CUBI). The capital will be used to refinance existing debt, acquisitions and related costs.
The terms of the transaction are very favorable for the Company and include a stepped up line of credit to $1.25 million with a variable rate of 3.75% initially, as well as a $1.2 million commercial mortgage with a rate of 4.5% termed out over five years. The financing closed on October 9.
The transaction was arranged and negotiated by New York based advisory services firm, Madison Park Advisors, LLC. Lawrence Adams, a partner at the firm stated, "We are excited to have facilitated this transaction as it enhances the overall roll up strategy by providing the necessary liquidity to help the Company consolidate the fragmented seal market."
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "This new banking arrangement provides the Company with greater lending flexibility and will improve our cash flow by approximately $100,000 with the new interest rates received. We are extremely pleased with the terms and conditions, and now believe we have the appropriate financial infrastructure in place to continue our roll-up strategy."
About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. Through a combination of leveraging its logistical expertise and sophisticated, experienced management, the company intends to be an active and strategic consolidator of small- and mid-sized businesses within the highly-fragmented, multi-billion dollar seal industry. Currently serving more than 3,000 customers, Sterling offers acquisition targets a unique growth opportunity and competitive advantage through logistical expertise, strong regional branding and industry-specific distribution centers.
About Madison Park Advisors, LLC
Through its proprietary MACH 2 program, Madison Park Advisors specializes in helping management teams navigate the channel from private company to public company. Madison Park Advisors' team of skilled financial and legal professionals assist companies through the entire going public process, from the initial financial statement audit to filing with the SEC, through obtaining a ticker symbol and securing expansion capital. Madison Park Advisors is located at 80 Pine St. 33rd Floor, New York, NY 10005. For additional information, please visit the company's website at http://www.madisonparkadvisors.com .
Sterling Consolidated Secures $2.45 Million Senior Bank Debt
Sterling Consolidated Corp. (OTCBB:STCC) (the "Company"), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today announced it has secured a $2.45 million senior secured note from Customers Bancorp, Inc. (Nasdaq:CUBI). The capital will be used to refinance existing debt, acquisitions and related costs.
The terms of the transaction are very favorable for the Company and include a stepped up line of credit to $1.25 million with a variable rate of 3.75% initially, as well as a $1.2 million commercial mortgage with a rate of 4.5% termed out over five years. The financing closed on October 9.
The transaction was arranged and negotiated by New York based advisory services firm, Madison Park Advisors, LLC. Lawrence Adams, a partner at the firm stated, "We are excited to have facilitated this transaction as it enhances the overall roll up strategy by providing the necessary liquidity to help the Company consolidate the fragmented seal market."
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "This new banking arrangement provides the Company with greater lending flexibility and will improve our cash flow by approximately $100,000 with the new interest rates received. We are extremely pleased with the terms and conditions, and now believe we have the appropriate financial infrastructure in place to continue our roll-up strategy."
About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. Through a combination of leveraging its logistical expertise and sophisticated, experienced management, the company intends to be an active and strategic consolidator of small- and mid-sized businesses within the highly-fragmented, multi-billion dollar seal industry. Currently serving more than 3,000 customers, Sterling offers acquisition targets a unique growth opportunity and competitive advantage through logistical expertise, strong regional branding and industry-specific distribution centers.
About Madison Park Advisors, LLC
Through its proprietary MACH 2 program, Madison Park Advisors specializes in helping management teams navigate the channel from private company to public company. Madison Park Advisors' team of skilled financial and legal professionals assist companies through the entire going public process, from the initial financial statement audit to filing with the SEC, through obtaining a ticker symbol and securing expansion capital. Madison Park Advisors is located at 80 Pine St. 33rd Floor, New York, NY 10005. For additional information, please visit the company's website at http://www.madisonparkadvisors.com .
