Essex Capital Arranges $4,250,000 Recapitalization

Tampa, Florida - March 7, 2011 - Essex Capital Group, Inc. (“Essex”) announced today that the firm recently closed a $4.25 million balance sheet recapitalization for Sabó USA, Inc. (“Sabó”), a wholly owned subsidiary of a Brazilian company, Sabo Industria e Comercio de Autopecas Ltda.

Sabó is a manufacturer of bonded piston seals, gaskets and hoses that are sold to the OEM automotive industry. The new financing was in the form of a new, $3.0 million asset-based line of credit and a $1.25 million equipment term loan provided by a private specialty finance company. As a part of the transaction, Sabó was permitted to remit a portion of the proceeds to the Brazilian parent company.

Reinaldo Panico Peres, CEO of Sabó USA, Inc., commented, “Our company, like all automotive companies, went through very tumultuous times in the last couple of years...we decided that the only way out of our current fate was to grow our business - and that required additional capital. First we tried to approach the ”usual suspects“ (i.e. banks) on our own. When we realized that they were shunning away from our industry, we hired Essex Capital to help us find cost-effective alternative sources of funds.”

“From Day 1, Essex introduced us to several potential lenders and patiently helped us evaluate the pro’s and con’s of each alternative. In the end, they helped us determine that an ABL (Asset-Based Lending) facility was required...With their help, we were able to negotiate a very competitive proposal which strengthened our balance sheet while allowing us to invest in our business and bring it back to profitability.”

“We look forward to work with Essex again in the future.”

Essex Capital acted as Sabó’s exclusive financial advisor in this transaction.

About Essex Capital Group
Essex Capital Group, Inc. is a Tampa, Florida-based corporate finance firm serving small and middle market privately-held companies located throughout the United States. With extensive capital markets experience, Essex provides creative solutions to businesses in need of financial restructuring. Typical advisory services include balance sheet recapitalizations with senior and subordinated debt, as well as introductions to institutional private equity investors. Since inception in 2003, Essex has successfully raised in excess of $275 million for its corporate finance clients.

Contact Information

Robert Swain

President

Essex Capital Group

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