NEW YORK, Dec. 3, 2020 /PRNewswire/ -- CIT Group
Inc. (NYSE: CIT) today announced that its Asset-Based
Lending and Sponsor Finance businesses collaborated to
serve as agent and sole lender on a $25
million revolving credit facility for KMS, LLC, one of the
nation's largest wholesalers of consumer product closeouts and
special buys alongside its own line of KMS-sourced products.
Founded in 1976 and based in Wichita,
Kansas, KMS purchases excess and reconditioned goods from
manufacturers and brands to sell to discount and alternative
channel retailers at both the national and local level. The company
also has a growing online drop-ship business servicing both
wholesale accounts and consumers directly through auction, discount
and daily deal websites.
"In this economy, we are continuing to see strong demand for our
wide array of general merchandise from clothing, hardware, kitchen
appliances, electronics, heaters, air conditioners and much more,"
said Tom George, CEO of KMS. "We
were impressed by CIT's agility and expertise in arranging this
financing to support our operations during this important period in
our continuing development."
"We appreciated CIT's experience in understanding KMS' business
needs and developing the right financing package to support its
growth," said Kurt Lentz, Principal
at New State Capital Partners, which acquired a majority stake in
KMS simultaneous with the closing of the financing.
"With its strong end-markets and history of sales growth, KMS
was an excellent candidate for an asset-based financing solution,"
said Chris Esposito, managing
director and group head for CIT's Asset-Based
Lending business. "We are pleased to provide the credit
facility KMS needed to pursue its business objectives."
CIT's Asset-Based Lending business, part of the company's
Commercial Finance division, meets clients' working capital
needs by offering innovative structures that reduce funding costs
and lower operational risks while improving earnings by leveraging
accounts receivable, inventory or fixed assets as collateral.
CIT's Sponsor Finance group provides cash flow and asset
based senior debt for private-equity backed transactions in the
middle market throughout the United
States.
About CIT
CIT is a leading national bank focused on
empowering businesses and personal savers with the financial
agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a
financial holding company with over a century of experience and
operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC,
Equal Housing Lender). The company's commercial banking segment
includes commercial financing, community association banking,
middle market banking, equipment and vendor financing, factoring,
railcar financing, treasury and payments services, and capital
markets and asset management. CIT's consumer banking segment
includes a national direct bank and regional branch network.
Discover more at cit.com/about.
About KMS
KMS is one of the largest wholesale
resellers of closeout consumer products in the U.S. The Company
provides a solution for brands to monetize excess or reconditioned
inventory, and supplies off-price and alternative sales channels
with branded products at attractive price points. KMS also
supplements its supply of closeout products with Company-branded
seasonal and in-demand value-priced goods it sources directly. The
Company distinguishes itself by providing significant value-added
capabilities to deliver an all-inclusive solution to its customers,
including re-merchandising and repackaging goods and offering
direct-to-consumer drop shipping services. For more
information visit www.kmscloseouts.com.
About New State Capital Partners
New State Capital
Partners LLC is an entrepreneurial-minded private equity firm that
strives to be nimble, decisive and cooperative. New State prides
itself on a long-term outlook, approaching each potential
investment as an opportunity to create lasting and valuable
relationships with company founders, independent sponsors, and
others. New State seeks to invest in market-leading companies with
$8 million to $30 million of EBITDA in the areas of business
services, industrials, and consumer. New State can commit more than
$50 million of equity capital per
transaction, using a variety of investment structures, through New
State Capital Partners II, LP. New State and its affiliates have
invested in 24 companies to date. For more information visit
www.newstatecp.com.
MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran@cit.com
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SOURCE CIT Group Inc.