Denim manufacturer receives more than $6.9 million for facility construction
Client need
An international denim fabrics manufacturer began construction of a facility in south Texas, the first denim production facility in the United States. The 212,725 square foot project is the first phase of a three phase company vision to bring manufacturing of its denim product to the U.S. The new facility would create 305 direct jobs and the subsequent three phases are expected to produce an additional 503 direct jobs.
A gap in financing caused the construction project to be delayed indefinitely. The manufacturer approached Baker Tilly Capital for assistance in securing the necessary funding to move forward with construction.
Baker Tilly Capital solution
Baker Tilly Capital worked closely with the company to identify potential incentive sources and fill the financing gap. Our team:
- Analyzed community impacts
- Conducted a financial analysis and feasibility study
- Secured New Markets Tax Credit allocations from multiple community development entities
- Assisted with the closing of the financing
Result
The Baker Tilly Capital team successfully secured over $27 million in New Markets Tax Credit allocations. Through these efforts, our client received more than $6.9 million in incentive funding, which completed the financing for the construction project to move forward.
For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.