Cortland Credit Group was successfully repaid on an $8,000,000 USD asset-based credit facility by their borrower, a regional chemical distribution company.  The repayment took place ~2 years after the original funding.
 
Originally structured as a $5,000,000 USD revolver plus $1,600,000 USD term loan, the company activated accordions twice, in each instance increasing the revolver by $1,000,000 USD as the company continued to grow.   
 
Cortland’s facility refinanced the incumbent bank and provided growth capital for two related entities.  The primary company is a regional chemical distributor to heavy industries in the Southeastern USA and US Gulf Coast.  The related company is an industrial contractor and insulation company in the same region.  Both are owned by a US-based private equity sponsor.  
 
During the life of the credit facility, the company grew margins and improved coverage materially between 2023 through to Cortland’s payout. Repayment of Cortland was by a regional bank in the Southeastern USA.  At the time of repayment, the borrower group had achieved Debt/EBITDA of 1.5x.
 
“The repayment of this credit facility highlights Cortland’s success in originating facilities with high growth companies, through our asset-based lending strategy, with tenors of 2-3 years” said Alex Preobrazenski, Managing Director & Portfolio Manager at Cortland.