Gibraltar Business Capital continued 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.

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.