The purpose of this transaction was to finance the purchase of the remaining 52% of the company stock from various shareholders of the company. First American Bank took advantage of the company’s strong cash flows and implemented a line of credit two-way sweep, coupled with a term note. This transaction’s cash flow allowed First American Bank to fund the transaction notwithstanding a significant collateral shortfall and without requiring personal guarantees of the selling shareholders and assignment of the qualified replacement plan. In addition, this freed up working capital thus allowing the company to maintain its accreditation with the State of New York.
