Automotive sector

BDC provided an $11.5 million loan to a Tier 1 automotive parts supplier with sales of more than $1 billion. The BDC loan financed the purchase of manufacturing equipment, which resulted in the creation of more than 100 new jobs. The company, which has positive cash balance and available operating credit facilities, had previously borrowed from lenders who have now withdrawn from the Canadian market. The BDC loan enabled the parts supplier to match capital acquisitions with long-term debt, thereby preserving positive cash balances and available operating credit facilities. With the BDC financing, the company can continue to pursue strategic acquisitions, despite the recession.