Amalgamated Capital Provides Asset-Based Financing to Michigan's Klochko Equipment Rental Company

NEW YORK, Jan. 25, 2012 /PRNewswire/ -- Amalgamated Capital (AmalCap), the New York-based leveraged finance division of Amalgamated Bank, announced today that it recently closed an asset-based financing arrangement with Klochko Equipment Rental Company (Klochko), which is based in the Detroit suburb of Melvindale, Michigan.  The amount of the financing was not disclosed.  AmalCap provides asset-based financing to individual companies as well as cash flow-based senior secured financing to support investments made by private equity sponsors in high quality, lower middle-market companies across the United States.

Klochko provides rental equipment to commercial, industrial, mining, shipping and construction companies that is typically used in demolition, site work, materials handling, excavation, and grading.

"As a national lender committed to working with businesses in the under-served lower middle market, Klochko is precisely the type of company we want to help get to the next level," said Robert Love, Executive Vice President and Head of Amalgamated Capital.  "It is one of few remaining family-owned businesses of its type -- a solid, well-managed company with a 60-year track record of successfully serving an important regional market and a company that, despite competition from larger national rental companies, was able to remain profitable during the recession."

"Klochko was looking for a straight refinancing of an existing credit facility," said AmalCap First Vice President Frank Marsicano.  "We went the extra step and created a financing package that included a three-year asset-based term loan coupled with a revolving line of credit, which provides both the flexibility and the capital to fund future growth."

"This financing provides the liquidity needed to support the continued expansion of our business," said Robert Klochko, President of Klochko Equipment Rental Company.  "With the additional resources provided by Amalgamated Capital's financing, we were immediately able to go out and obtain a very favorable discount on an equipment purchase we had been targeting for some time."

About Amalgamated Capital
Amalgamated Capital is the leveraged finance division of Amalgamated Bank, a privately-owned commercial bank with $4.5 billion in assets. AmalCap provides asset-based financing to individual companies as well as asset-based and cash flow-based senior secured financing to support investments made by private equity sponsors in lower middle-market companies across the United States.  Borrowers operate in a diverse array of industry sectors and generally have annual revenue ranging from $15 million to $150 million and EBITDA of $3 million to $15 million.  Visit AmalCap at www.amalcap.com.

About Amalgamated Bank
Established in 1923 by the Amalgamated Clothing Workers of America, Amalgamated Bank continues the progressive traditions of its founders as the only union-owned bank in the United States. Chartered by New York State, Amalgamated Bank is an FDIC insured commercial bank.  In addition to Amalgamated Capital™, the Bank's corporate divisions include Investment Management, Commercial Banking, and Commercial Real Estate Finance, and Amalgamated has 25 retail branches including 20 in New York City as well as branches in:  Las Vegas, Nevada; Lyndhurst, New Jersey; Pasadena, California; and Washington, D.C. Visit www.amalgamatedbank.com.

About Klochko Equipment Rental
In addition to its headquarters near Detroit, Klochko has rental facilities in Fair Haven, MI, serving eastern Michigan, and in Saginaw, serving the Tri Cities area. The Company, owned and operated by the Klochko family for the past 60 years, provides rental equipment to commercial, industrial, mining, shipping and construction companies. The equipment is typically used in demolition, site work, materials handling, excavation, and grading.  Visit http://www.klochko.com.

SOURCE Amalgamated Capital