Second Lien

The Company: Venture backed, subscription e-commerce brand.

The Financing Situation:  The Company is in growth mode, rolling out direct-to-consumer brands in addition to its subscription e-commerce business, and was seeking a non-dilutive solution as a bridge to a strategic sale or next equity round.  The Company‘s management team wanted excess working capital cushion to remain focused on growth initiatives and maintain compliance with its bank’s liquidity covenant.

The Solution:  Super G was able to quickly get comfortable with the Company’s value proposition, growth strategy, management team, and institutional backers.  Most importantly, the Company was able to demonstrate a clear path to profitability in a worst case scenario of no strategic sale or additional equity financing.  Super G structured a flexible, non-dilutive second lien loan subordinated to the Company’s senior lender.

Super G Provides $1,250,000 Seasonal Working Capital Loan to Education Software Provider

The Company:

Delivered in a SaaS model, the Company provides core educational programs (primarily math & science) for middle and high school students.

The Financing Situation:

The Company is a seasonal business from a selling and cash collection perspective as the Company’s customers (school districts) have specific buying patterns and the Company collects lump-sum annual payments. The Company’s senior lender, Bridge Bank, provides an asset based facility and thus there is a limited availability during the low season (i.e. limited AR to leverage) for working capital cushion. The Company historically solved seasonal working capital shortfalls with venture capital/convertible notes and was seeking non-dilutive capital as an alternative.

The Solution:

Super G was able to quickly get comfortable with the Company’s SaaS model, seasonality, growth plans, and management team to close a $1,250,000 loan that solved the Company’s seasonal working capital need. Super G’s amortization schedule was structured around the Company’s seasonal cash flow – light amortization in low cash collection periods and increased amortization during the busy season. Super G worked closely with the Company’s existing lender, Bridge Bank, to finalize an intercreditor agreement and fund the Company within 3 weeks.

For more information on Bridge Bank, please contact:

Chris Hill

SVP Regional Director

Capital Finance

christopher.hill@bridgebank.com 

408-556-8635 p

408-660-5355 m

 

Intrepid is pleased to announce the completion of a growth capital raise for its client, Solid Commerce, a leading player in the Software-as-a-Service (SaaS) eCommerce space. With the support of its new partners, Silicon Valley-based Montage Capital and Silicon Beach-based SaaS Funding, both of whom are minimally dilutive providers of growth capital to technology businesses, Solid Commerce will accelerate the implementation of its growth initiatives, including sales and marketing, improved UI/UX, and continued marketplace expansion. Intrepid acted as the exclusive financial advisor to Solid Commerce.

“We are very proud of the platform that we have built. Recently, we have enhanced the user interface and introduced several new features that provide our customers with unprecedented access to the burgeoning online marketplace environment, which in turn, has attracted tremendous demand from end users and large industry partners,” said Eran Pick, CEO of Solid Commerce. “This growth investment will allow the company to continue aggressively expanding and further solidify its position as the market leader in retail eCommerce software.”

The success of the Solid Commerce platform is based on the company’s unique ability to seamlessly integrate with businesses of all shapes and sizes—from SMB, to mid-market to enterprise, across any end market. “Eran and his team have done a truly remarkable job in creating a transformational software platform catering to the large and ever-growing global retail eCommerce marketplace,” said Tristan Snyder, Co-Head of Intrepid’s Software & Services practice. “Eran engaged us to run a highly competitive, tailor-made process focused on value-added software and technology growth investors. We are privileged to have had this opportunity to help Eran and couldn’t be more excited about the future of the company.”

Headquartered in Marina Del Rey, Calif., Solid Commerce is the preeminent provider of retail eCommerce solutions that bind everything that is required to create a single seller experience for retailers online. Solid Commerce has won numerous industry accolades, including earning a position on the Inc. 500 in 2014 and being named a Top 10 Retail eCommerce Solutions Provider in 2015 by CIO Outlook.

Link to Press Release:

http://www.businesswire.com/news/home/20160804005292/en/Intrepid-Advises-Preeminent-Cloud-Based-Retail-eCommerce-Software

About Intrepid Investment Bankers

Intrepid provides M&A, capital raising and strategic advisory services to entrepreneurs and middle-market companies in various industry sectors. Our heritage, rooted in our founders’ successful 35-year history, breeds a culture that embraces teamwork, tenacity and creativity to win big for our clients. We believe that every company has an entrepreneurial passion that drives it and a story that defines it. Our team delivers results through skillful positioning of the client’s story and relentless execution. Based in Los Angeles, Intrepid augments its international capabilities through active membership in M&A International, an exclusive global alliance of M&A advisory firms.

The Company: 
A publicly traded franchisor and licensor of take-and-go food products distributed through traditional and non-traditional food service outlets.

The Financing Situation: 
The Company was seeking growth capital in the amount of $2,000,000 to develop a new food service concept that would serve as a showcase for new franchisees and  an additional revenue stream.  The Company preferred a non-dilutive debt structure over raising equity and traditional mezzanine capital was not an option due to the amount of financing needed and dilutive equity component.

The Solution: 
Super G was able to quickly get comfortable with the Company’s operating history, royalty revenue streams, and growth opportunities, underwriting and closing a $2,000,000 second lien loan in just a few weeks.  Super G provided a structured solution with a custom repayment schedule in partnership with the Company’s senior lender, BMO Harris Bank.

About Us:
Super G Funding is an alternative lender with over $100 mm in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5 mm per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.

The Company:
A leading provider of IT consulting and cloud collaboration solutions to the government, Fortune 500 companies, and medium size businesses.

The Financing Situation:
The Company engaged an investment bank to raise institutional mezzanine capital to finance its next phase of growth. During this process the Company had a short-term working capital need to fulfill a backlog of new service contracts and to stay current with existing vendors. The Company needed incremental capital beyond its borrowing base since new service contracts require upfront capex before the Company can start invoicing and generating accounts receivable.

The Solution:
Super G underwrote and closed a 2nd lien term loan within weeks to meet the Company’s timing needs. Super G provided a structured solution with a custom repayment schedule in partnership with the Company’s senior ABL lender, CapitalSource.  CapitalSource was a value added partner in terms of their service and speed, working with all parties to ensure timely execution and a successful closing.

For more information on Capital Source, please contact:
Patrick Brennan
Senior Vice President | Southern California
pbrennan@capitalsource.com

Gretchen Wile
Senior Vice President | Northern California and Pacific Northwest
gwile@capitalsource.com

About Us:
Super G Funding is an alternative lender with over $100MM in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5MM per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.

The Company:
A sponsor-backed company that formulates and distributes impression fragrances.

The Financing Situation:
The Company recently transitioned from a commercial bank lender to an asset based lender, Bibby Financial Services.  The Company required a seasonal-over-advance to build inventory and maintain vendor relationships in order to fulfill anticipated sales order growth for the holiday season.

The Solution:
Super G was able to get comfortable with the Company’s operating history, 2016 growth initiatives, management team and seasonal cash flow.  Underwriting and approval process of the 2nd lien loan took place quickly allowing Bibby to reduce its over-advance position and providing the Company with enough liquidity to meet immediate seasonal production demands.  Super G’s covenant light loan documents, cooperative process with existing senior lenders and rapid decision making allowed for an efficient and seamless closing.

The Company:

A sponsor-backed company which engineers, manufactures, and sources customized user-interface and product identification components for customers in the medical, aerospace, industrial, and consumer industries.

The Financing Situation:

The Company was in the process of transitioning from its commercial bank lender to an asset based lender, Marquette Business Credit, and Super G helped complete the financing structure.

The Solution:

Super G was able to get comfortable with the Company’s continued improvements, growth strategy and senior management team. Underwriting and approval process of the 2nd lien loan took place quickly allowing Marquette to present a comprehensive solution to its credit committee.  Super G’s  flexible structured solution, covenant light loan documents, and rapid decision making allowed for an efficient and seamless closing.

The Company: A fully-integrated digital media content company.

The Financing Situation:  The Company was in the process of raising venture capital to fund strategic acquisitions and other long-term growth initiatives.  During this process, the Company needed additional working capital to fund operations in order to maintain its growth trajectory.

The Solution:  Super G was able to quickly get comfortable with the Company’s value proposition, experienced management team, and institutional backer.  Most importantly, the Company demonstrated the ability to sufficiently debt service Super G’s amortizing term loan assuming the venture debt and Series B round did not close.  Super G structured a flexible 2nd lien solution subordinated to the Company’s senior lender, FastPay, a financial platform that provides credit and payment solutions to the global digital media industry.  Super G’s covenant light loan documents and rapid decision making allowed for an efficient and seamless closing.   Post-funding, the Company was able to successfully close its venture debt round.

For more information on FastPay, please contact:

Maytal Shainberg
Sr. Director, Engagement
maytal@gofastpay.com
www.gofastpay.com

About Us:
Super G Funding is an alternative lender with over $100MM in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5MM per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.

 

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.