The Allied Defense Group is a publicly traded, U. S. based company whose primary operating subsidiaries are in Europe. The Company wanted to expand its operations in North America through direct investment and acquisitions. Arranging committed credit facilities for U. S. acquisitions was no easy matter, since most U. S. based lenders are reluctant to provide credit to middle-market businesses, when the credit would be primarily supported by European operating companies.

The Company needed an innovative solution and, once again, retained Source Capital, Ltd. to find and structure a suitable credit facility. With years of capital market experience, Source knew that most regulated lenders (e.g. banks and insurance companies) would be unable to help. Further, that since the Company manufactured munitions many larger financial institutions would have lending policies precluding them from providing financing. Using its capital market knowledge, Source was able to research and identify a number of non-regulated lenders and specialty finance funds. Source developed a presentation, and more importantly a proposed credit structure, to convince credit providers that the Company’s growth strategy was worth supporting. Not only did Source successfully secure $18 million for the Company, but also the credit facility can be expanded to $30 million and up to $10 million of additional mezzanine capital can be added.

When you need creative solutions to financing the growth of your business, you can count on Source Capital, Ltd.