NEPTUNE, N.J., Oct. 10, 2013 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC) (the "Company"), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today announced it has secured a $2.45 million senior secured note from Customers Bancorp, Inc. (Nasdaq:CUBI). The capital will be used to refinance existing debt, acquisitions and related costs.
The terms of the transaction are very favorable for the Company and include a stepped up line of credit to $1.25 million with a variable rate of 3.75% initially, as well as a $1.2 million commercial mortgage with a rate of 4.5% termed out over five years. The financing closed on October 9.
The transaction was arranged and negotiated by New York based advisory services firm, Madison Park Advisors, LLC. Lawrence Adams, a partner at the firm stated, "We are excited to have facilitated this transaction as it enhances the overall roll up strategy by providing the necessary liquidity to help the Company consolidate the fragmented seal market."
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "This new banking arrangement provides the Company with greater lending flexibility and will improve our cash flow by approximately $100,000 with the new interest rates received. We are extremely pleased with the terms and conditions, and now believe we have the appropriate financial infrastructure in place to continue our roll-up strategy."
About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. Through a combination of leveraging its logistical expertise and sophisticated, experienced management, the company intends to be an active and strategic consolidator of small- and mid-sized businesses within the highly-fragmented, multi-billion dollar seal industry. Currently serving more than 3,000 customers, Sterling offers acquisition targets a unique growth opportunity and competitive advantage through logistical expertise, strong regional branding and industry-specific distribution centers.
About Madison Park Advisors, LLC
Through its proprietary MACH 2 program, Madison Park Advisors specializes in helping management teams navigate the channel from private company to public company. Madison Park Advisors' team of skilled financial and legal professionals assist companies through the entire going public process, from the initial financial statement audit to filing with the SEC, through obtaining a ticker symbol and securing expansion capital. Madison Park Advisors is located at 80 Pine St. 33rd Floor, New York, NY 10005. For additional information, please visit the company's website at www.madisonparkadvisors.com.
This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
CONTACT: Communications Contacts: Todd Fromer / Phil Carlson KCSA Strategic Communications Phone: 212-896-1215 / 212-896-1233 Email: email@example.com / firstname.lastname@example.orgSource:Sterling Consolidated Corporation