Rhino Health USA, Inc. Closes $58 Million New Markets Tax Credit Funding
FORT WORTH, Texas–(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 the company’s $200 million investment for its large-scale manufacturing expansion in North Texas.
“We are excited to close this significant tax credit transaction that will allow us to fully scale our expansion in Fort Worth,” said Mark Lee, CEO of Rhino Health USA, Inc. “It shows that the market is already responding to our product and that the future is very bright for Rhino Health USA, Inc.”
As the only national manufacturer of nitrile rubber gloves, Rhino will use the 400,000 square foot facility at the Majestic Fort Worth South Business Park to produce 3 billion gloves annually. It will be Rhino’s largest manufacturing plant to date and will also house the company’s headquarters. Rhino’s investment will ultimately bring approximately 520 new, high-quality jobs to Fort Worth and exponentially increase the company’s production. Additionally, as nitrile gloves play a major role in personal protective equipment, this expansion significantly strengthens the supply chain infrastructure for US-made PPE.
NMTC funding will be used to finance 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. US Bancorp Community Development Corporation, the community investment and tax credit division of US Bank, is participating as an NMTC investor. Structuring and support for the project was provided by Jennifer Veal, President and CEO of Community Inspired Capital Development, LLC and the law firm of Mark D. Foster.
“Rhino would like to thank all of the NMTC parties who made this transaction possible. The additional capital made possible by the NMTC transaction has been particularly impactful as this large scale project is being implemented in a particularly challenging economic environment, where construction and implementation costs are at an all time high,” said Mark. Lee, CEO of Rhino Health. United States, Inc.
“It was a privilege to work on such an important project with such a great collaborative team,” said Pacesetter CDE President Mark DiSalvo.
About Rhino Health USA, Inc.
Rhino Health USA (www.rhinohealth.net), based in Fort Worth, is the nation’s leading manufacturer of nitrile gloves. 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 currently operates two manufacturing plants and continues to aggressively and strategically expand its operations.
About the New Business Tax Credit Program: The New Markets Tax Credit (NMTC) program was created by Congress in 2000 and encourages community development and economic growth through the use of federal tax credits that attract private investment in struggling communities..
About Community Inspired Capital Development, LLC (CICD) – CICD is dedicated to helping communities, non-profit organizations and business owners navigate the New Market Tax Credit program and achieve their development goals through this unique funding resource and very effective. CICD’s specialist advisory services are dedicated exclusively to financing NMTC, with focused expertise and bespoke structuring solutions, keeping the project on course for success from start to finish.
About US Bancorp Community Development Corporation – US Bancorp Community Development Corporation, the community investment and tax credit subsidiary of US 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, the rehabilitation of historic buildings, the construction of needed affordable housing, the development of renewable energy facilities and the generation of 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 small minority business investment firm. In 40 years of history, it has invested more than a billion dollars of its capital in 383 small businesses, 88% owned by minorities. PCDE continued its mission in the NMTC market, establishing an innovative collaboration with the Competitive Downtown Initiative to extend the reach of NMTC to downtown entrepreneurs. PCDE’s national effort focuses on project profiles that benefit from the innovation catalysis represented by PCDE’s unique focus on life-changing and neighborhood-transforming efforts. 100% of its proposed investments target high-stress areas with unemployment rates and poverty levels as high as 29% and 56%, respectively.
About TMF CDE – The Texas Mezzanine Fund (TMF) is a community development financial institution (CDFI) that has been promoting economic growth in low- and moderate-income communities in Texas since 1999. TMF was capitalized by a consortium of financial institutions to fill a void important in the Texas financial sector. countryside.
About Stonehenge Capital – Founded in 1999, Stonehenge Capital is a nationally recognized specialty finance firm operating at the intersection of finance and community development. The firm’s expertise includes financing small businesses, real estate and community development projects that leverage tax credits as well as conventional debt and equity. Since its first award in 2004, Stonehenge has been an active participant and steward of the US Treasury Department’s New Markets Tax Credit program and its mission to stimulate private investment in economically challenged communities through the country. www.stonehengecapital.com
About Prestamos CDFI – Prestamos CDFI, LLC (“Prestamos”) is a Community Development Financial Institution (“CDFI”) and Community Development Entity (“CDE”). : provides high quality financial products, technical assistance services to small businesses and – high impact economic development projects. Prestamos, through its parent company, Chicanos Por La Causa, Inc., has administered a variety of loan programs since 1980. In light of the success of its loan programs and the continued need and demand for these services, CPLC established Prestamos CDFI, LLC in 2000. Prestamos successfully promotes economic and community development to create jobs, revitalize communities, and facilitate community wealth creation. Prestamos CDFI was named the US Small Business Administration‘s #1 PPP lender by number of loans and #3 lender by dollar volume with $7.6 billion in loans approved with an average loan size of $15,526 serving 78% minority-owned businesses.
About MBS Urban Initiatives CDE LLC –MBS Urban Initiatives CDE is a Community Development Entity (CDE) created by Saint Louis-based McCormack Baron Salazar Development Corporation to improve, strengthen and revitalize low-income communities for families and children and to stimulate opportunities economic benefits for low-income residents. by creating jobs and providing services within these communities. MBS Urban Initiatives CDE is an equal opportunity provider.