CIT Group's Asset-Based Lending and Sponsor Finance businesses collaborated to serve as agent and sole lender on a $25 million revolving credit facility for KMS, LLC, one of the nation's largest wholesalers of consumer product closeouts and special buys alongside its own line of KMS-sourced products.
 
Founded in 1976 and based in Wichita, Kansas, KMS purchases excess and reconditioned goods from manufacturers and brands to sell to discount and alternative channel retailers at both the national and local level. The company also has a growing online drop-ship business servicing both wholesale accounts and consumers directly through auction, discount and daily deal websites.

"In this economy, we are continuing to see strong demand for our wide array of general merchandise from clothing, hardware, kitchen appliances, electronics, heaters, air conditioners and much more," said Tom George, CEO of KMS. "We were impressed by CIT's agility and expertise in arranging this financing to support our operations during this important period in our continuing development."

"We appreciated CIT's experience in understanding KMS' business needs and developing the right financing package to support its growth," said Kurt Lentz, Principal at New State Capital Partners, which acquired a majority stake in KMS simultaneous with the closing of the financing.

"With its strong end-markets and history of sales growth, KMS was an excellent candidate for an asset-based financing solution," said Chris Esposito, managing director and group head for CIT's Asset-Based Lending business. "We are pleased to provide the credit facility KMS needed to pursue its business objectives."