FAME Approves Loan Insurance for Gould & Sons, Inc. and WahlcoMetroflex
Thursday, June 17, 2010
1:44 PM
The Board of Directors of the Finance Authority of Maine (FAME) today approved commercial loan insurance on separate bank loans for two Maine companies, AS & CB Gould and Sons, Inc. of Cornville, and WahlcoMetroflex of Lewiston. FAME’s actions help the companies create and retain a total of 131 Maine jobs.
FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution. Pro-rata insurance covers a certain percentage of a lender’s loss in the event of default and liquidation.
“The approval of loan insurance for these two Maine companies illustrates the diversity of Maine businesses that FAME can assist. Creating and maintaining jobs in both the forest products and manufacturing sectors are essential to the Maine economy,” stated FAME Chief Executive Officer Beth Bordowitz.
AS & CB Gould, Inc., formed in 1978, operates three mechanized logging operations in the state. The company has over thirty employees and includes as customers Dirigo Timberlands, Osito, and Plum Creek. FAME will provide 90% pro-rata loan insurance on a five-year term loan by Camden National Bank in the amount of $1,153,000, as well as 25% leveraged loan insurance on a fifteen-year loan by the bank in the amount of $117,000. These facilities are in addition to 90% pro-rata loan insurance on a Camden National term loan in the amount of $325,000 already approved by FAME. The loan insurance will help the company refinance existing debt and purchase equipment for its tree harvesting operations. FAME’s actions will help the company create four full-time positions and retain thirty Maine employees.
“Gould appreciates FAME’s swift assistance in the form of loan insurance, as well as its past assistance through other loan insurance. The new equipment is critical to helping the company improve its cash flow and improve operations going forward,” stated company chief executive officer Michael Gould.
FAME also approved 80% pro-rata loan insurance on a $1,250,000 Androscoggin Bank line of credit for WahlcoMetroflex in Lewiston. For over fifty years, the company has been a global leader in designing and manufacturing diverters, dampers and expansion joints. The underlying insured bank loan will provide a revolving line of credit to help the company secure manufacturing contracts. FAME’s actions will help the company retain ninety-seven Maine jobs. FAME has provided previous financing assistance to the company, including past help for the current management team to buy the company out of a former parent company’s bankruptcy.
“WahlcoMetroflex appreciates FAME’s continued support of our company,” stated John Powell, president and chief executive officer of the company. “We look forward to a bright future employing our cutting-edge technology and industry knowledge.”