Eastern Bank Provides Financing for Capstan Atlantic’s Conversion to an Employee-Owned Company

Rhea-AI Summary

Eastern Bank has facilitated Capstan Atlantic's transition to an employee-owned company through financing. This includes a term loan for implementing an Employee Stock Ownership Plan (ESOP) and a revolving line of credit for ongoing financial needs. Capstan Atlantic, a prominent powder metal manufacturer, will be rebranded to Atlantic Sintered. The move aims to ensure long-term success and reward its 260 employees. Eastern Bank offers various commercial financing solutions, aiding businesses in improving cash flow and efficiency. Key personnel involved include Greg Buscone, Brendan O’Neill, Thomas King, and Youssef Abdouh from Eastern Bank, with Chuck Coyne from Empire Valuation advising Capstan Atlantic.

Positive

• Eastern Bank provided significant financing to facilitate Capstan Atlantic's conversion to an ESOP, which is expected to strengthen the company's long-term success.
• Provision of a revolving line of credit will support Capstan Atlantic's ongoing financial needs.
• The financing solution is tailored to ensure a smooth transition to employee ownership, potentially boosting employee morale and productivity.
• Eastern Bank's broad range of commercial lending solutions, including working capital and equipment loans, enhances its appeal to various industries.
• Capstan Atlantic's rebranding to Atlantic Sintered is a strategic move that may attract new business opportunities.

Negative

• The transition to an ESOP may involve significant costs and operational challenges, which could impact short-term financial performance.
• Dependence on Eastern Bank for both term loans and revolving credit lines may increase financial risk if terms become unfavorable.

BOSTON--(BUSINESS WIRE)-- Eastern Bank is pleased to announce it has provided the financing to facilitate Capstan Atlantic’s conversion to an employee-owned company. Founded in 1956 and located in Wrentham, MA, Capstan Atlantic is an industry leading powder metal manufacturer producing complex gears, sprockets and structural components for the automotive industry and a wide array of other applications, including lawn mowers, snowblowers and all-terrain vehicles. Eastern Bank is providing a term loan to support Capstan Atlantic’s conversion to employee ownership through the implementation of an Employee Stock Ownership Plan (ESOP), making it a fully employee-owned company. Eastern Bank is also providing a revolving line of credit to support the company’s ongoing financial needs.

“Capstan Atlantic, which will be rebranded to Atlantic Sintered, is pleased to begin a new banking relationship with Eastern Bank,” said Ben Hall, President and CEO. “The creation of an employee stock ownership plan is an exciting way to help ensure the long-term success and growth of our company and reward our loyal 260 employees. Eastern Bank’s financing and ESOP expertise has been instrumental as they took the time to understand our business, and created a financing solution that enabled a smooth transition process for our company. We look forward to continuing our relationship with Eastern for our different banking needs.”

Greg Buscone, Executive Vice President, Chief Commercial Banking Officer of Eastern Bank, said, “Capstan Atlantic takes pride in the quality and craftsmanship of the gears and products it manufactures for its customers and is committed to the dedicated employees who deliver these results. We are pleased to assist them on their path to employee ownership, and welcome them to Eastern Bank.”

Eastern Bank provides a range of commercial financing offerings to help companies across many industries improve cash flow, increase efficiencies and build for the future. Commercial lending solutions include working capital/lines of credit, equipment/term loans, real estate loans, acquisition financing, asset-based lending and employee stock ownership plan-related financing.

The Commercial Banking team advising Capstan Atlantic includes: Executive Vice President, Chief Commercial Banking Officer Greg Buscone; Senior Vice President, Commercial Group Director Brendan O’Neill; Senior Vice President, Commercial Team Leader Thomas King; and Senior Vice President, Commercial Relationship Manager Youssef Abdouh. Empire Valuation Senior Managing Director Chuck Coyne served as an advisor to Capstan Atlantic throughout the ESOP transaction.

About Eastern Bank

Founded in 1818, Boston-based Eastern Bank has more than 120 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of March 31, 2024 Eastern Bank had approximately $21 billion in total assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes, and takes pride in its outspoken advocacy and community support that includes more than $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues and communities. Join us for good at www.easternbank.com and follow Eastern on Facebook, LinkedIn, X and Instagram. Eastern Bankshares, Inc. (Nasdaq Global Select Market: EBC) is the stock holding company for Eastern Bank. For investor information, visit investor.easternbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514098632/en/

Media contact:

Andrea Goodman

Eastern Bank

a.goodman@easternbank.com

781-598-7847

Investor contact:

Jill Belliveau

Eastern Bankshares, Inc.

InvestorRelations@easternbank.com

781-598-7920

Source: Eastern Bank

FAQ

What type of financing did Eastern Bank provide to Capstan Atlantic?

Eastern Bank provided a term loan for implementing an Employee Stock Ownership Plan (ESOP) and a revolving line of credit for ongoing financial needs.

What is the new name for Capstan Atlantic after the transition?

Capstan Atlantic will be rebranded to Atlantic Sintered.

How many employees will benefit from Capstan Atlantic's ESOP transition?

The ESOP transition will benefit 260 employees.

What is the stock symbol for Eastern Bank?

The stock symbol for Eastern Bank is EBC.

What industries does Eastern Bank's commercial financing support?

Eastern Bank's commercial financing supports various industries, including automotive, equipment manufacturing, and real estate.

What are some of the commercial lending solutions offered by Eastern Bank?

Eastern Bank offers working capital/lines of credit, equipment/term loans, real estate loans, acquisition financing, asset-based lending, and ESOP-related financing.