Burdale Capital Finance, Inc., (“Burdale”) announced the completion of a $6.5 million asset based credit facility to refinance the North American revolving credit line of Avon Automotive, a Red Diamond Capital portfolio company. The North American facility is part of a $20 million global facility.
Avon Automotive, which has annual revenues of approximately $350 million, is a leading global supplier of low-pressure rubber and plastic hoses for air induction, fuel and coolant systems, as well as vibration management products.
Headquartered in Cadillac, Michigan, Avon operates 11 manufacturing facilities in the United States, Mexico, the United Kingdom, Portugal, Spain, France, the Czech Republic, Turkey and India was acquired by Red Diamond in August 2006 through a management-led buyout with roughly $80 million of debt financing and $40 million of equity.
Mark Kammert, Managing Director of Red Diamond Capital, stated: “Burdale quickly analyzed the Avon Automotive opportunity and moved decisively to refinance the North American revolving credit portion of Avon’s senior credit facility. Burdale’s creativity allowed them to look through the well-publicised challenges of the automotive industry to understand the fundamental strength of Avon Automotive’s credit. We look forward to a long and successful relationship.”
Bill Dircks, Avon Automotive’s Executive Vice President and Chief Financial Officer commented, “We are very pleased to be teaming up with Burdale. This refinancing completes a significant year of operating restructuring and positions the company to better support our customers, suppliers and markets”.
David Grende, Chief Executive, Burdale said: “The Avon transaction demonstrates our capabilities, while working with Avon’s existing lenders and investors, in delivering unique and customized financial solutions. With their operational improvement plan complete, we look forward to working with Avon and Red Diamond as they execute their long-term growth plans.”
