SG Credit Partners Provides $2.0MM Second Lien Growth Capital Loan

Mar
1
2019

The Company: Founder owned staffing company that provides a full suite of employment solutions to IT, life sciences, and business services clients.

Financial Profile: Revenue: $85.0MM | EBITDA: $4.0MM

The Financing Situation: The Company had realized strong revenue growth over the last few years and had a strong pipeline for continued growth. The Company’s bank, Wells Fargo Capital Finance (“Wells Fargo”), was in the process of increasing its revolving LOC facility to scale with business growth and wanted subordinated capital to provide liquidity cushion. Additionally, the principals of the Company were sensitive to dilution and wanted a solution without a warrant / equity requirement.

The Solution: SG Credit Partners was able to get comfortable with the business due to its strong client base consisting of large fortune 1000 clients, historical profitability, strong growth trend, and a robust pipeline of new business. SG Credit Partners provided a non-dilutive $2.0MM loan behind Wells Fargo with structured amortization to provide flexibility around the Company’s projected cash flow. The transaction closed within three weeks and Wells Fargo successfully increased their AR facility.

SG Credit Partners’ second lien (subordinated) loans can help senior lenders close deals (onboard new clients), offer a liquidity solution when unable to lend up (retain existing clients), and/or solve out-of-formula / technical default issues.

For more information on Wells Fargo Capital Finance, please contact:
Tom Engelberger
Vice President
Thomas.Engelberger@wellsfargo.com
(754) 301-5163
https://wellsfargocapitalfinance.com/


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California loans are made pursuant to SG Credit Partners, Inc.'s California Department of Corporations Finance Lender License No. 60DBO-87290. Credit approval is subject to SG Credit Partners, Inc.'s credit standards, and actual terms (including actual loan amount) may vary by applicant. SG Credit Partners, Inc. requires certain supporting documentation with each new application. Complete disclosures of APR, fees, and payment terms are provided with each loan and are available from SG Credit Partners, Inc. at 23 Corporate Plaza, Suite 100, Newport Beach CA 92660, telephone 1-800-631-2423.