First Citizens Bank Renews $14MM Credit Facility for Flux Power
APR 28, 2023 - 7:01 am
Flux Power, a developer of lithium-ion energy storage solutions for the electrification of commercial and industrial equipment, renewed the available credit under its existing $14 million facility with First Citizens Bank.
The original facility was with Silicon Valley Bank, which is now a division of First Citizens Bank after First Citizens purchased SVB out of FDIC receivership following the bank’s collapse in March. Flux Power will use the renewed facility to support higher working capital requirements related to increased customer demand.
“First Citizens Bank is a top-tier financial institution, and we are pleased to now be partnering with them on our revolving line of credit,” Chuck Scheiwe, CFO of Flux Power, said. “This renewal, along with our existing cash, is intended to meet our anticipated capital resources to fund planned operations.”
“Our strong purchase orders, improving backlog and expansion of margins through improved sourcing and supply chain management and operational process improvement is leading us toward our near-term goal of profitability,” Ron Dutt, CEO of Flux Power, said. “Combined with a recent successful showcase of our full product line at Promat 2023, the material handling and logistics industry’s premier global event, I have never been more confident about the future and long-term shareholder value of Flux Power.”
On March 10, SVB was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. On March 26, the FDIC entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank by First Citizens Bank. On March 27, the 17 legacy Silicon Valley Bridge Bank branches began operating as Silicon Valley Bank, a division of First Citizens Bank.
Flux Power’s other available financing resources include: (i) a previously disclosed $5 million credit facility agreement, dated May 11, 2022, by and among the registrant and Cleveland Capital and other lenders, which remains unused; and (ii) the company’s at-the-market (ATM) facility.
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