Broadwind Energy Inc., an Illinois-based provider of wind components and services through its towers, gears and energy services divisions, has closed on a new three-year $20 million asset-based credit line with The PrivateBank.
According to the new credit line terms, Broadwind says it will have the ability to borrow up to $20 million against a borrowing base consisting of up to 85% of the face value of eligible accounts receivable of the company; up to 50% of its book value of eligible inventory; and up to 50% of the appraised value of its eligible machinery, equipment and certain real property up to $10 million.
Under this new credit facility, Broadwind may elect, with the lender’s consent, to increase the size of the commitment by an amount up to $5 million if it achieves minimum EBITDA of $7 million for fiscal year 2016. Broadwind says the new credit facility replaces the company’s previous credit facility with AloStar Bank of Commerce.
Broadwind CEO, Stephanie Kushne, says, “This new credit facility provides better terms and borrowing availability, as well as a lower borrowing cost, which will be important as we fund business expansions and consider strategic, bolt-on acquisitions.”