knock, knock, knock.......
creeeeaaak!....hello????.....anybody home???
Actrade Arranges Financing from ING Barings to Finance Trade Acceptance Drafts
NEW YORK, Dec. 17 /PRNewswire/ -- Actrade International, Ltd. (Nasdaq: ACRT) today announced that it has closed a $10 million bridge facility with ING Barings, the global corporate and investment banking organization, to finance the purchase of Actrade's patented Trade Acceptance Drafts (TADs) on a revolving basis. The bridge facility is part of a larger $25 million five year commitment, which is subject to final documentation.
A TAD is a post-dated payment draft given by a buyer of goods or services to its supplier. Once the buyer signs the TAD, the commercial transaction is complete (virtually eliminating product disputes) and the receivable has been converted into a financial instrument, which is purchased by Actrade. The advantage to the seller is immediate payment (within 48 hours) and the elimination of credit risk. The buyer obtains extended, unsecured credit terms.
Under this new program, Actrade will finance up to $25 million of TADS, most due within 3-12 months, through the ING Barings revolving facility, without recourse and off balance sheet. The term of the $25 million revolving credit facility is five years.
Based in New York City, Actrade International Ltd., through its wholly owned subsidiaries, provides innovative domestic and international trade finance services. The Company's TAD Program and other services are marketed to businesses in the United States and abroad through offices in Atlanta, Chicago, Fort Lauderdale, Los Angeles, New York and Philadelphia. A newly established international division, Actrade Resources, Inc., based in the Bahamas, will develop and provide financing tools for companies trading outside the United States and for American exporters. Actrade Capital Canada, Inc., based in Toronto, focuses on the financing and trading needs of Canadian-based companies.
SOURCE Actrade International, Ltd.
CO: Actrade International, Ltd.; ING Barings
ST: New York
IN: FIN
SU:
12/17/98 09:03 EST prnewswire.com
|
