Houston, Texas - Insulation foam and coatings supplier Lapolla Industries Inc. said 2 Sept it has received a $12.5 million senior secured credit facility from Bank of America Merrill Lynch, through Bank of America Business Capital (BABC).
According to Lapolla, it will use the asset-based loan to refinance existing debt and add working capital for growth. "The new financing ... provides Lapolla with interest expense savings, adds working capital to help sustain our continued aggressive growth, and significantly strengthens our balance sheet," said Douglas Kramer, Lapolla's president and ceo, in the company's announcement.
Lapolla said its earnings report for the six months ended 30 June 2010 showed 45-percent growth in both revenue and profitability from the first half of 2009, and it projects annual sales of over $60 million for 2010.
Kramer said, "The growth is a direct result of increased consumer awareness, demand for energy cost control, and an overall desire to reduce carbon footprint. The growth is also a clear indicator, in a very soft economy, that spray polyurethane foam is capturing market share from other conventional insulation products."
"
