Kennedy, Inc.

Problem:

A manufacturer of custom accessory items for the automotive industry needed financing for construction of a new facility and working capital to process large orders. Although the company had never missed a loan payment, its large regional bank was reluctant to lend to the manufacturer when it began to experience the challenges and opportunities of growth.

Solution:

First International Bank provided a three-tiered financing package: a construction mortgage converting to a permanent 20-year mortgage, a 7-year term loan, and a revolving line of credit.

Finance Package Gives Custom Manufacturer Room to Grow

NORTH KINGSTOWN, R.I. - In order to grow their businesses and increase profits, many manufacturers need working capital to fill large orders. However, instead of looking at a company's growth potential, many banks simply look at financial statements and are reluctant to provide financing.

This happened to Steve Kennedy, president of Kennedy Incorporated, in North Kingstown, R.I. Kennedy, Inc., founded in 1979, manufactures high quality die-struck jewelry, medallions and insignias, including key tags, mechanical key rings and exterior and interior car emblems. Kennedy, Inc. is the primary source supplier for all custom manufactured accessory items for the import automotive industry in North America. It manufactures hood ornaments for several luxury car manufactures, including Mercedes-Benz, BMW, Jaguar and Porsche. With extensive contacts in the automotive industry, Kennedy, Inc. is well positioned to expand its business and offer its capabilities to the domestic automotive industry. However, to do so the company needed a construction mortgage to expand its facilities, as well as a revolving line of credit to fill large orders quickly.

However, Kennedy's bank, a large regional institution, was hesitant to provide financing when the company began to experience the challenges and opportunities of growth.

A friend referred Kennedy to Keith Kelly, senior vice president and head of First International Bank's Providence office.

"I was impressed with First International Bank from the very beginning," said Mr. Kennedy. "The Bank is a throw-back to the old-style of banking. It didn't just crunch the numbers; Keith Kelly and the Bank's chairman toured our facility to learn how we operate. I don't know of any other bank that would send its chairman to tour a manufacturing facility."

We looked at Mr. Kennedy's business and saw tremendous stability and growth potential, said Mr. Kelly.

First International Bank provided Kennedy, Inc. with a three-tiered financing package: a construction mortgage converting to a permanent 20-year mortgage, a 7-year term loan, and a revolving line of credit.

"First International Bank has provided me with a very flexible arrangement that will enable me to grow and diversify my business," said Mr. Kennedy. "Like us, the Bank is a closely-held company; therefore, it has a great appreciation for the entrepreneurial way we conduct business."