CARite received an injection of funds to expand its leasing portfolio from a finance provider that has an understanding of what the company is trying to accomplish within the subprime market.
On Wednesday, Crystal Financial announced the completion of a $45.0 million senior credit facility for CARite. Headquartered in Madison Heights, Mich., CARite sells and leases pre-owned vehicles through their network of owned and partnered CARite locations.
Through Brite Financial Services, the company provides access to lease financing options for consumers with limited or poor credit history.
The companies indicated proceeds from this facility will be used to refinance existing debt and to fund lease portfolio growth.
“At CARite we are focused on making the car purchasing process a better experience through great selection, transparent pricing and multiple financing options,” CARite chief executive officer John Neary said. “At this important juncture in our company’s history, it was critical that our first institutional debt capital partner understand our business and our goals.
“Crystal’s extensive underwriting expertise in the specialty finance sector in addition to their creative structuring approach set them apart as we considered various options,” Neary continued. “Finally, the inclusion of a delayed draw facility as part of the overall commitment will allow us to continue to expand our lease financing business with certainty.”
Crystal Financial is a portfolio company of Solar Capital. As an independent commercial finance company, Crystal Financial provides senior and junior secured loans for both asset-based and cash flow financings (minimum of $10 million in fundings) to middle-market companies.
Crystal Financial co-CEO Steven Migliero Jr. explained why the firm decided to collaborate with CARite.
“John and his team have done a tremendous job building an organization that delivers a very strong consumer value proposition,” Migliero said. “We are excited to help facilitate their future growth and continued success.”