Other (Agriculture, Education, Food & Beverage, Healthcare, Media, Real Estate)

The Company:

Provider of a SaaS based system that assists K-12 educators and administrators in managing, overseeing and enhancing their students’ engagement in digital learning environments.

The Financing Situation:

Due to the cyclical nature of education-based budgeting and spending in school districts, cash flow in the EdTech space is highly seasonal. Contracts are paid on an annual basis with the vast majority coming in during one quarter of the year. This leads to temporary cash shortfalls which were historically financed primarily through equity from investors. Knowing the company was very close to attaining “escape velocity” and not wanting to further dilute equity, they sought out venture debt as an alternative financing option.

The Solution:

Led by a strong management team, demonstrating solid revenue growth since inception, and having already completed a cost restructuring during 2017, Super G recognized the company was poised for profitability and overall success with the help of some working capital cushion in the near term. Super G was able to work quickly to complete diligence and documentation in order to fund a $1.25MM loan within three weeks and solve the company’s seasonal cash shortfall.

The Company:

Producer of machined and fabricated components and parts for original equipment manufacturers in the agriculture, construction, mining, and oil & gas industries.

The Financing Situation:

The Company was seeking additional working capital to create availability on its line of credit and fund growth initiatives. The Company’s asset based lender, North Mill Capital (“North Mill”), which is not affiliated with Super G, was providing a flexible, asset based credit facility with favorable advance rates on accounts receivable & inventory.  Given the cyclical nature of the industry, the Company was seeking additional cushion on its credit facility.

The Solution:

Under similar situations, our typical deal structure is to provide a second lien loan and enter into an intercreditor agreement with the senior lender(s). However, since there were multiple senior secured equipment lenders in this situation, negotiating and entering into intercreditor agreements with all would be cumbersome and delay the closing timeline. Super G and North Mill determined the most efficient process to close the loan was a junior participation agreement in which Super G participated in North Mill’s credit facility as a “last-out” participant. This allowed the Company to obtain an additional $2.0 million of capital in less than three weeks via North Mill’s asset based facility.

For more information on North Mill, please contact:

Heidi Ames
Senior Vice President
hames@northmillcapital.com
609-917-6207
https://www.northmillcapital.com

The Company:
Publicly held (OTC) provider of telecom & engineering services and solutions.
Financial Profile (Consolidated): Revenue: $32mm | EBITDA: $2.7mm

The Financing Situation:
The Company was seeking subordinated debt to help finance the acquisition of a telecom staffing company that would expand its geographic footprint and service offerings. Given the consolidated EBITDA profile (<$5mm) of the business, traditional mezzanine debt was not an option and the Company preferred a non-dilutive subordinated debt option that could close quickly.

The Solution:
Super G was able to quickly get comfortable with the acquisition synergies, the Company’s management team, and favorable industry momentum to approve a $1.15mm subordinated term loan that would fill the purchase price funding gap. Super G worked in partnership with Prestige Capital Corporation, who provided AR financing, to close the accretive acquisition.

For more information on Prestige Capital Corporation, please contact:
Stuart J. Rosenthal
Executive Vice President
SRosenthal@prestigecapital.com
201-944-4455
www.prestigecapital.com

The Company:
Leading producer of perennials, annuals and tropical plants and one of the largest greenhouse operations in the United States.

The Financing Situation:
The Company needed additional working capital for its low season (fall – winter), when sales volumes are at their lowest and preparations for the spring high-volume period begin. The Company has an asset based lending facility in place for working capital, but AR & inventory levels often do not provide sufficient availability to cover production costs during the low season.

The Solution:
Super G was able to quickly get comfortable with the Company’s seasonality, inventory mix, and production risks which were mitigated by an experienced management team, strong historical financial performance, and collateral coverage. Super G worked in partnership with the Company’s senior lender, GemCap, to provide a second lien term loan with a payment schedule tailored to the Company’s seasonal cash flow – interest-only payments during the low season and amortizing payments during the busy season.

For more information on GemCap, please contact:
Richard Ellis
Co-President
rellis@gemcapsolutions.com
310-593-9073
www.gemcapsolutions.com

The Company:
Private equity backed, outsourced pharmaceutical service provider conducting clinical research.
TTM Revenue: $17mm |TTM EBITDA: $1mm

The Financing Situation:
The Company had a cash flow based term loan with its bank and was in technical default.  Given the combination of lender fatigue, lumpy sales & cash collections due to the timing of contracts, and high monthly payments on the term loan, the Company was seeking immediate relief.  An asset based lender was not a solution due to timing and the term loan take-out amount would not conform to a borrowing base.

The Solution:
Super G provided a $2.0 million senior secured, interest-only bridge loan for a full take-out of the bank and working capital to support the Company’s immediate financing needs – a flexible structure which will allow the Company to operate its business with sufficient liquidity and buy time to run a full process for a new bank relationship.  Super G was able to get comfortable with the sales lumpiness & YTD financial performance given the Company’s strong track record, accounts receivable collateral, enterprise value, and experienced management team.  Super G was able to close quickly (within 2 weeks) which benefited both the bank (removed loan from special assets) and the Company (covenant light loan, working capital cushion, and debt service flexibility).

The Company:
Wine producer and distributor operating in a state of the art, custom winemaking facility.

The Financing Situation:
In the early stages of a capital raise, the Company was seeking additional working capital to create availability on its line of credit and fund growth initiatives. The Company’s asset based lender, Ares Commercial Finance (“Ares”), which is not affiliated with Super G, was providing a flexible asset based credit facility with favorable advance rates on accounts receivable & inventory and preferred the Company to fund any additional capital needs with junior capital.

The Solution:
Under similar situations, our typical deal structure is to provide a second lien loan and enter into an intercreditor agreement with the senior lender(s). However, since there were multiple senior secured equipment lenders in this situation, negotiating and entering into intercreditor agreements with all would be cumbersome and delay the closing timeline. Super G and Ares determined the most efficient process to close the loan was a junior participation agreement in which Super G participated in Ares’ credit facility as a “last-out” participant. This allowed the Company to obtain an additional $2 million of capital in less than three weeks via Ares’ senior working capital facility.

For more information on Ares Commercial Finance, please contact:

Matt Grimes, Managing Director
mgrimes@aresmgmt.com
(424) 285-2628
800 Corporate Pointe, Suite 300
Culver City, CA 90230
www.aresmgmt.com

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

 

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:

Top ten Little Caesars franchisee with over 20 locations in 3 states.

The Financing Situation:

The Company had engaged Trinity Capital LLC, a Los Angeles-based boutique investment bank with expertise in food & beverage, to arrange a capex facility to fund new locations awarded by Little Caesars.  During this process, an immediate capital need arose to retire maturing debt, corporate tax liens, and for short-term liquidity.

The Solution:
Super G was able to get comfortable with the Company’s financing situation because of the owner’s long operating history, number of operating locations, and strong relationship with Little Caesars corporate.  Super G underwrote and funded a senior term loan within weeks, improving the Company’s balance sheet for the capex facility financing and providing sufficient liquidity for short-term working capital needs while Trinity Capital LLC continues its process.  Super G’s ability to get comfortable with tax lien situations and move quickly allow us to be a unique solution.