National Coalition for Capital

Success Stories

T&K MACHINE
Paris, Texas Company Makes Great Strides with CAPCO Investment

USE OF FUNDS - Recapitalization and growth capital to expand the business at a precision aerospace machine and assembly facility

Advantage Capital Partners Texas CAPCO investment: $1.5 million
Stonehenge Capital Corporation Texas CAPCO investment: $1.5 million
Total investment from all sources in funding round: $5.03 million

PROJECT SUMMARY

T&K Machine is a manufacturer of highly engineered precision-machined airframe components and light assemblies for the commercial and military aerospace markets. The company produces a wide range of structural and airframe components, such as door latches and parts for wing boxes and cargo boxes. T&K serves some of the leading original equipment managers (OEMs) and Tier 1 aerospace suppliers including Spirit AeroSystems, Goodrich Corporation, Boeing and Vought Aircraft.

The 2007 Texas CAPCO investment and follow on funding enabled T&K Machine to purchase new manufacturing equipment, restructure debt, and create and/or retain approximately 70 well-paying jobs with full benefits, with an average salary of $35,019. Financing also enabled management team members to purchase ownership in the company.

T&K is located in Paris, Texas, the seat of Lamar County, a "Strategic Investment Area" county in northeastern Texas, close to the Oklahoma border. Additionally, the region is a federally qualified "Distressed Area" and "Hot Zone."

The company fosters job opportunities for low-income and unemployed persons through collaborative relationships with the Texas Workforce Centers. The one-month long program targets both high school graduates and out-of-work hourly laborers for high-speed, precision machining. Participants spend two weeks of half-day classroom oriented curriculum (developed by T&K) and half-day in the T&K manufacturing setting for live demonstrations; at the conclusion of the two weeks, participants then spend two weeks of full-day apprenticeship on the T&K manufacturing floor. To date, 45% of those starting the program have graduated, with 14 securing full-time employment with T&K.

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GAME Equipment, LLC
Napoleonville, Louisiana

COMPANY PROFILE

GAME Equipment, LLC is an agricultural machinery manufacturer and distributor. In 2002 John Deere ceased production of pineapple, vegetable and kenaf harvesting product lines. GAME was able to obtain rights to manufacture the discontinued machinery lines and fill the production gap. In 2007, GAME became an official John Deere dealer/distributor, which allows them to utilize Deere parts and suppliers. Also in 2007, GAME was able to add continuous sugar cane loaders to their offerings. The company exports their locally made products internationally.

At a time when GAME needed additional funding for equipment purchases, their traditional lender refused to extend their line of credit. BizCapital provided the funding needed to maintain operations and retain 21 full-time employees. Since BizCapital’s investment, GAME has hired an additional three employees, and the business expects to hire more in the coming months.

NEW MARKETS INVESTMENT

In 2010 BizCapital provided financing in the amount of $2.3 million to GAME Equipment.

BizCapital’s investment in GAME was made in large part through the federal New Markets Tax Credit program and the Louisiana New Markets Development program.

These programs stimulate economic growth in communities that historically have been underserved by traditional sources of investment capital.

In 2011, Louisiana USDA Rural Development recognized GAME Equipment as the “Business of the Year.”

HIGHLIGHTS

-$2.3 million New Market programs investment enabled purchase of equipment and new building construction

-Funding enabled the retention of 21 employees, and three additional jobs have been created with more growth expected

-GAME is part of the export economy, selling local manufactured products to international customers