Amalgamated Capital, a recently formed division of Amalgamated Bank, has served as lead arranger and administrative agent for a USD29.5m senior secured credit facility in support of the acquisition of Salvage Direct by QCSA Holdings, a portfolio company of Kinderhook Industries.
Amalgamated Capital provides cash flow senior debt financing to facilitate investments made by private equity sponsors in lower middle market companies.
Based in Davenport, Iowa, QSCA Holdings (d/b/a QCSA Auto Auctions) is an independent salvage auction company. Founded in 1998 with headquarters in Titusville, Pennsylvania, Salvage Direct established the first online auction in the total-loss salvage industry.
Kinderhook Industries is a New York-based private equity fund with USD650m of committed capital.
"This is a great example of the type of transaction in which AmalCap plays a leadership role," says Timothy Clifford (pictured), executive vice president and head of Amalgamated Capital. "Our strategy as a provider of senior debt financing involves working with strong equity sponsors like Kinderhook in bringing together two companies that complement each other well and have proven management teams."
"The acquisition of Salvage Direct is an important step for us, one that solidifies our top tier position in our industry," adds John Lindle, president of QCSA Holdings. "Amalgamated Capital’s team quickly understood our business and put together a syndicated financing package that fit our needs. We were impressed by their responsiveness and flexibility throughout the process."
