Xtreme Manufacturing and Snorkel have secured an Asset Based Loan (ABL) for up to US$65M, to support the future growth of the businesses.
The ABL, which was closed on 18 May 2018 with JPMorgan Chase Bank, N.A. (North America) will be used by the manufacturing businesses to retire existing debt including some of the amounts due to Ahern Rentals, part of Ahern family of companies that Snorkel/Xtreme belongs to. The loan will also provide access to working capital for the continued growth of the business globally.
Don Ahern, owner of Xtreme Manufacturing, and majority shareholder in Snorkel, said, “Both of our manufacturing businesses have experienced significant growth in the past four years, and are now poised for further growth thanks to strong market conditions globally, as well as the hard work of our teams who have expanded our customer footprint and developed world leading products.
“The time is right for us to secure this access to external funding to enable us to invest further in our global manufacturing capabilities, product development and customer service, taking our businesses to the next level.”
The ABL is structured as a revolving line of credit that will grow as the business grows. The initial draw down was used to retire some existing debt including $15 million to Ahern Rentals.