GTSI Corp. an enterprise IT solutions and services provider to the government announced today that it closed on a two year $135 million senior credit facility on May 27 with Castle Pines Capital LLC (CPC), a channel finance company in the technology industry. The new facility, will be used for inventory financing and working capital requirements. In addition to this, it will also replace the company’s existing asset-based revolving credit facility.
“The confidence that Castle Pines Capital has shown in GTSI is gratifying, and we are looking forward to a long and successful banking relationship with them, ” said Jim Leto, GTSI’s Chief Executive Officer. “During these extraordinarily trying financial times, this credit facility signifies a solid endorsement of GTSI’s abilities, marketability and worthiness.”
The new facility, which matures in May 2011, provides GTSI with greater working capital support from extended channel finance terms with most of its largest manufacturing partners. The facility will also provide GTSI with the ability to purchase up to $5 million of its stock.
“We are pleased to welcome GTSI as a valued customer of Castle Pines Capital, ” said Jim Merrill, CPC’s Senior Vice President. “As GTSI is a recognized leader in the government IT products and services sector, we’re happy the company chose CPC to provide the channel finance programs and working capital revolver to finance their continued growth.”