Company will use the money to build its Fort Worth manufacturing expansion
FORT WORTH, Texas, July 29, 2022--(BUSINESS WIRE)--Fort Worth-based Rhino Health USA, Inc. today announced the closing of a $58 million New Markets Tax Credit (NMTC) transaction that will help fund the company’s $200 million investment for its large-scale manufacturing expansion in North Texas.
"We are pleased to close on this important tax credit transaction that will allow us to fully build-out our Fort Worth expansion," said Mark Lee, CEO of Rhino Health USA, Inc. "This shows that the marketplace is already responding to our product and that the future is very bright for Rhino Health USA, Inc."
As the only domestic manufacturer of nitrile rubber gloves, Rhino will use the 400,000 square foot facility in Majestic Fort Worth South Business Park to produce 3 billion gloves per year. This will be Rhino’s largest manufacturing facility to date and will also house the company’s corporate headquarters. Rhino’s investment will eventually bring approximately 520 new quality jobs to Fort Worth and will exponentially increase the company’s production output. Additionally, as nitrile gloves play a major role in Personal Protective Equipment, this expansion significantly strengthens the Made in the USA PPE supply chain infrastructure.
The NMTC financing will be used to fund nitrile glove manufacturing equipment and working capital and was made possible by five Community Development Entity Lenders: Texas Mezzanine Fund, Stonehenge Community Capital, Prestamos CDFI, Pacesetter CDE and MBS Urban Initiatives. U.S. Bancorp Community Development Corporation, the community investment and tax credit division of U.S. Bank, is participating as the NMTC investor. Project structuring and support was provided by Jennifer Veal, President and CEO of Community Inspired Capital Development, LLC and the Law Office of Mark D. Foster.
"Rhino would like to thank all the NMTC parties that made this transaction possible. The additional capital made possible from the NMTC transaction has been particularly impactful as this large-scale project is being implemented in an especially challenging economic environment, where construction and implementation costs are at all-time high," said Mark Lee, CEO of Rhino Health USA, Inc.
"It has been a privilege working on such a consequential project with a great collaborative team," noted Pacesetter CDE President Mark DiSalvo.
About Rhino Health USA, Inc.
Fort Worth-based Rhino Health USA (www.rhinohealth.net) is the nation’s first nitrile glove manufacturer. In 2019, the company began operations in Church Rock, New Mexico in partnership with the Navajo Nation. Rhino works closely with the Department of Defense and is currently operating two manufacturing factories and is continuing to aggressively and strategically expand its operations.
About the New Markets Tax Credit Program: The New Markets Tax Credit (NMTC) program was established by Congress in 2000 and incentivizes community development and economic growth through the use of Federal tax credits that attract private investment to distressed communities.
About Community Inspired Capital Development, LLC (CICD) - CICD is dedicated to helping communities, nonprofit organizations and business owners navigate the New Markets Tax Credit Program and realize their development goals through this unique, highly effective funding resource. CICD’s specialty advisory services are devoted exclusively to NMTC financing, with focused expertise and tailored structuring solutions, keeping the project on a path to success from start to close.
About U.S. Bancorp Community Development Corporation - U.S. Bancorp Community Development Corporation, the community investment and tax credit subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country. As a leading community development investor, lender and tax credit syndicator, its capital commitments contribute to the creation of new jobs, rehab of historic buildings, construction of needed affordable housing, development of renewable energy facilities and generate economic activity in underserved communities across the country. Visit USBCDC on the web at www.usbank.com/cdc.
About Pacesetter CDE - Pacesetter CDE, Inc.(PCDE) was created by the nation’s oldest Minority Enterprise Small Business Investment Company. In a 40-year history it invested over $1B of its capital in 383 small businesses, 88% minority-owned. PCDE kept to mission in the NMTC market, establishing an innovative collaboration with the Initiative for a Competitive Inner City to extend the reach of NMTC to inner-city entrepreneurs. PCDE’s nationwide effort focuses on project profiles that benefit from catalyzing innovation represented by PCDE’s unique concentration on life-changing and neighborhood transforming efforts. 100% of its proposed investments target severely distressed areas with unemployment rates and poverty levels as high as 29% and 56%, respectively.
About TMF CDE – Texas Mezzanine Fund (TMF) is a Community Development Financial Institution (CDFI) that has promoted economic growth in low and moderate-income communities throughout Texas since 1999. TMF was capitalized by a consortium of financial institutions to fill an important void in Texas’ financial landscape.
About Stonehenge Capital - Founded in 1999, Stonehenge Capital is a nationally recognized specialty finance company operating at the nexus of finance and community development. The firm’s expertise includes financing small businesses, real estate and community development projects that leverage tax credits along with conventional debt and equity capital. Beginning with its first award in 2004, Stonehenge has been an active participant and steward of the U.S. Department of the Treasury’s New Markets Tax Credit program and its mission to drive private investment to economically distressed communities across the country. www.Stonehengecapital.com
About Prestamos CDFI - Prestamos CDFI, LLC ("Prestamos"), is a Community Development Financial Institution ("CDFI") and a Community Development Entity ("CDE"). : provides high-quality financial products, technical assistance services for small businesses and - impactful economic development projects. Prestamos through its parent corporation, Chicanos Por La Causa, Inc., has administered a variety of lending programs since 1980. In light of the success of its loan programs and the continued need and demand for these services, CPLC created Prestamos CDFI, LLC in 2000. Prestamos successfully promotes economic and community development in order to create jobs, revitalize communities and facilitate community wealth building. Prestamos CDFI was named the #1 U.S. Small Business Administration PPP lender by number of loans and the #3 lender by dollar volume with $7.6 billion in approved loans with an average loan amount of $15,526 serving 78% minority owned businesses.
About MBS Urban Initiatives CDE LLC -MBS Urban Initiatives CDE is a Community Development Entity (CDE) established by the Saint Louis-based development firm of McCormack Baron Salazar to enhance, strengthen, and revitalize low-income communities for families and children and to stimulate economic opportunities for low-income residents through the creation of jobs and the provision of services within these communities. MBS Urban Initiatives CDE is an equal opportunity provider.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220729005402/en/
Kasey S. Pipes 817-542-3870