Cash Flow

The Company:

A family owned and operated waste management company providing solid waste hauling and recycling services to residential and commercial customers throughout Southern California.

The Financing Situation:

The Company was awarded an exclusive license to service a highly sought after municipality and needed immediate financing to fund upfront working capital. At the same time, the Company was in technical default with its senior lender and had other outstanding liabilities that required immediate payoff.

The Solution:

Super G was able to get comfortable with the Company’s financing situation because of the long history of the business, the cash flows associated with the new contract, and the character of the entrepreneur.  Super G’s 2nd lien loan allowed the Company to finance its new municipality route, which was expected to generate significant revenue, remain on good terms with its senior lender and normalize working capital.

The Company:

A private equity backed candle manufacturer in the Southwest with distribution throughout the United States and Canada.  They offer a variety of candle types, fragrances, and accessories.

The Financing Situation:

Due to growth the Company had a larger than usual seasonal need during its low working capital cycle in the summer.  The Company’s bank could not increase availability fast enough for production going into the fall busy season.  The Company’s business model is such that it does not generate accounts receivable so alternative lenders such as factors and asset based lenders were not an option for additional working capital and even if there were assets available to lend against, they would not be able to provide enough availability for production due to the heavy seasonality of the business.

The Solution:

Super G was able to get comfortable with the Company’s business model, management team, and heavy seasonality and structured a $2MM tailored solution that matched the Company’s cash flows.  To facilitate a quick closing, Super G purchased the existing note from the senior lender and upsized the loan amount to provide additional working capital for production going into the fall busy season.  This solution provided the Company with flexible capital quickly and positioned the Company to generate a strong fall/holiday season.

The Company:

A manufacturer of various Hispanic themed ice creams, frozen yogurt, fresh fruit bars and other icy treats distributed throughout major big box and supermarket chains.

The Financing Situation:

The Company was in technical default with its senior lender and had an immediate seasonal over-advance capital need to finance raw materials for its summer busy season.

The Solution:

The senior lender assigned its note to Super G to facilitate a smooth closing and Super G upsized the loan to provide working capital for the Company’s busy season and position the Company to obtain a new permanent senior lender.  The Super G loan enabled the Company to finance a large seasonal need and to transition to a new senior lender that will provide a revolving facility to support the Company’s continued growth.

The Company:

A leading designer and manufacturer of software, hardware and related accessories for professional audio recording and live sound applications worldwide.

The Financing Situation:

The Company had engaged an investment bank to arrange a more flexible credit facility that would scale with the Company’s anticipated growth.  To avoid pressures on shipping windows during the investment banking process, and pending completion of a new senior debt facility, the Company projected extra working capital requirements which created a need for 2nd lien debt capital that could close quickly.

The Solution:

Super G underwrote and approved a 2nd lien term loan within weeks and worked in partnership with the existing senior lender on an intercreditor agreement to close the transaction quickly given the time sensitivity.   Super G was able to address the short-term capital need with a structured solution that provided a custom repayment schedule and our covenant light documents made it easy for the investment bankers to continue their debt raise process.  Following the closing, the Company was successful in replacing its senior capital with a more flexible lender.