This $7,000,000 transaction allowed the ESOP to purchase of 51% of the company’s stock from its two owners. The buyout was structured through a term note and line of credit. Additionally, we provided the company with a working capital line of credit to assist with the company’s operations. First American Bank was able to structure a facility without requiring personal guarantees of the selling shareholders and provide funding using the company’s strong cash flow. The available collateral enabled the company to receive a longer amortization and maintain sufficient debt service coverage. The company anticipates repayment of this debt within several years, and proceeding with the sale of the remaining 49% of stock to become a 100% ESOP owned company.
