STRRP - Star Equity Holdings Announces its KBS Builders Business Unit Closed a $4 Million Revolving Line of Credit with KeyBank | Benzinga
OLD GREENWICH, Conn., April 25, 2024 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (NASDAQ:STRR, STRRP)) ("Star" or the "Company"), a diversified holding company, announced today that its KBS Builders, Inc. ("KBS") business unit has closed a $4 million revolving line of credit ("LOC") with KeyBank National Association ("KeyBank"). KBS intends to use the LOC to meet its working capital requirements and execute its business plan. The closing of this LOC provides both KBS and Star with financial flexibility to focus on their respective growth initiatives.
"We are pleased to announce the closing of this credit facility with KeyBank," said David Noble, CFO of Star. "Star remains focused on providing growth capital to its operating companies in addition to preserving available cash for acquisitions. Star's holding company structure offers its operating companies the ability to manage their own working capital needs, and this LOC gives KBS that flexibility. Partnering with a national bank of KeyBank's prestige is a testament to the strength of the KBS business today and the remarkable transformation we have achieved since acquiring it in September 2019."
The LOC has an April 30, 2025 maturity date, which can be extended based on fulfillment of certain terms and conditions. Borrowings under the LOC will bear an interest rate of SOFR plus an applicable margin of 3.00%.
About Star Equity Holdings, Inc.
Star Equity Holdings, Inc. is a diversified holding company currently composed of two divisions: Construction and Investments.
Construction
Our Construction division manufactures modular housing units for commercial and residential real estate projects and operates in two businesses: (i) modular building manufacturing and (ii) structural wall panel and wood foundation manufacturing, including building supply distribution operations for professional builders.
Investments
Our Investments division manages and finances the Company's real estate assets as well as its investment positions in private and public companies.
Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release that are not statements of historical fact are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking Statements include, without limitation, statements regarding (i) the ...