Austin Financial Services, Inc. (“AFS”), a national asset-based lender providing financing solutions to small-and-medium-sized businesses for over 40 years, recently closed a $115 million debt recapitalization with two lenders, lowering the company’s overall cost of capital. Proceeds from the transaction were used to refinance existing debt and to continue to support the growth of the business.
AFS is a privately held non-bank lender specializing in working capital financing serving the middle market, by facilitating loans from $1 million to $20 million. The company provides secured financing against accounts receivable, inventory, and equipment for companies across the country in the manufacturing, distribution, wholesaling, transportation, staffing, and business services sectors, among others.
As part of the transaction, the company’s incumbent senior lender renewed and extended its facility for a 3-year commitment. In addition, AFS obtained a new second lien subordinated debt facility with expanded availability and a lower cost of funds that will continue to support the company’s expansion.
“This recapitalization positions AFS for continued growth while also enabling a further investment into our expanding team and platform,” said President and CEO, Jason Anish. “We have proudly provided over $150 million in capital across more than 50 credit facilities since our management team took over the company in 2016, quadrupling the size of our loan portfolio. This new debt capital will allow us to broaden our customer base and continue to provide competitive financing to small business borrowers across the United States.”
Hovde Group, LLC served as the company’s exclusive financial advisor and Buchalter served as legal advisor on the transaction.
About Austin Financial Services (AFS)
Headquartered in Los Angeles, Austin Financial Services (AFS) is a privately held, nationwide leader in asset-based lending, serving the middle-market sector for over 40 years. Specializing in alternative funding options, AFS provides support to small and medium-sized businesses that are experiencing growth or undergoing a turnaround. Clients typically have revenues ranging from $10MM to $250MM and have borrowing needs of up to $20MM. AFS's comprehensive portfolio includes flexible revolving lines of credit secured by accounts receivable and inventory, along with term loans secured by equipment.