U.S. Corrugated Secures $43.5 Million for New Packaging Facility in California

 

First Niagara Commercial Finance, Dedham, Mass., USA, recently announced that it closed on a $43.5 million financing package to help U.S. Corrugated (Coal Center, Penn., USA) expand its operations and open a new, state-of-the-art corrugated box plant in California. U.S. Corrugated manufactures and markets corrugated packaging products.

A unique syndication package for U.S. Corrugated arranged by First Niagara's Asset-Based Lending and Capital Markets teams included combining existing asset-based lending financing with term loans to support the company's plant expansion and refinancing of an existing lender relationship. The successful syndication involved financing commitments from two other banks.

With six facilities located in Pennsylvania, Ohio, and Louisiana, U.S. Corrugated's expansion into California will facilitate marketing, manufacturing, and distribution growth for its corrugated products in the western U.S. The new facility, a 215,000 sq. ft. manufacturing center, is located in Santa Fe Springs, Cali., and will employ up to 100 people. The facility should be fully operational by the end of September.

"This transaction was an innovative approach to help facilitate our expansion and overall growth," said David Doherty, CFO for U.S. Corrugated. "The collaboration of First Niagara's team from various disciplines, along with other lenders, created an outcome that specifically provided the capital solution for implementing our financial strategy."

"Already a long-term partner with U.S. Corrugated, our collective team enabled the structuring of a compelling financing package that facilitated a transaction to fit U.S. Corrugated's game plan," said James Cannella,  VP of First Niagara's Asset-Based Lending team. "Our knowledge of this client and special commercial lending solutions led to being selected as the lead arranger and administrative agent for this deal."

More specific information and contacts about First Niagara Commercial Finance is available through e-mail inquiry or by calling (877) 260-7099.

U.S. Corrugated, a privately-held corporation, is a leading independent manufacturer of corrugated packaging and point-of-purchase displays. Along with its strategic partner companies, U.S. Display Group, Kampack, and U.S. Corrugated of Milwaukee, U.S. Corrugated offers its customers a single source solution for a complete portfolio of corrugated products for packaging, distribution, and merchandising.