Independent Sponsor

The Company: Full-service mechanical contractor located in the Midwest that provides HVAC, plumbing/piping, and other mechanical services to the commercial and industrial/manufacturing sectors. Revenue: $90 MM | EBITDA: $5 MM.

The Financing Situation: The Company recently raised capital from a private equity sponsor that has invested in several construction services businesses.  The new ownership group wanted to refinance its existing credit facility, but traditional bank financing was not an option as the Company typically acts as a subcontractor on construction projects that are primarily on paid-when-paid contracts.  The ownership group also wanted a financing partner that could grow with the business.

The Solution: SG Credit Partners teamed up with CapitalPlus Construction Services to provide a $13.0 MM structured factoring facility based on the Company’s strong ownership group, diversified customer base, and leverage profile.

For more information on CapitalPlus Construction Services, please contact:
Scott Applegate
President
applegate@capitalplus.com
865.670.2345

Target Company:
Oilfield service provider that specializes in pipeline construction and the fabrication of modularized production facility equipment to midstream operators as well as exploration and production (E&P) companies that operate in the Permian and Eagle Ford Basins.
Financial Profile: Revenue: $50mm | EBITDA: $8mm

Acquiring Company:
An energy-focused holding company that provides financial, technical, operational and strategic management services to its subsidiaries across the globe.

Financing Situation:
Target Company management wanted to sell its oilfield services business for liquidity and to focus on larger infrastructure projects. Given the timing of new infrastructure projects, Target Company management wanted to sell its oilfield services business within 30 days. Target Company management had a personal relationship with Acquiring Company management and presented an exclusive, quick closing acquisition opportunity. Since the Target Company is asset light (primarily just accounts receivable with a progress billing element), an ABL facility was insufficient to close the entire deal and a bank offering a revolver + cash flow term loan would have taken too long.

The Solution:
SG Credit Partners (“SGCP”) was able to get comfortable with the deal based on previous lending experience with Acquiring Company management, strong historical financial performance of Target Company, and industry tailwinds. SGCP provided a $5.0 million bifurcated credit facility to close the acquisition quickly (within 3 weeks) and provide additional working capital. SGCP’s $5.0 million bifurcated credit facility consisted of a $2.0 million interest-only loan and a $3.0 million term loan. SGCP provided this structure to close the acquisition quickly and bridge the Company to a new senior lender. The new senior lender will refinance SGCP’s $2.0 million interest-only loan and SGCP will then subordinate its $3.0 million term loan under its typical second lien structure.

The Company:
Family office backed designer, marketer and manufacturer of specialty dancewear.
Revenue: $18mm | EBITDA: $2.4mm

The Financing Situation:
The Company had recently established an inventory based credit facility with Crossroads Financial to fund general working capital needs and was in need of additional liquidity during its low season (April to October) for inventory purchases and general operating expenses. Given the recent inception of the relationship and low inventory asset base due to seasonality, Crossroads Financial was not comfortable providing an out of season over-advance stretch piece.

The Solution:
Super G was able to get comfortable with the business due to historical performance, strong recurring customer base and consistent seasonal trends. Super G provided a non-dilutive second lien loan with repayment structured around seasonal cash flow, which successfully bridged the Company through its low season to busy season collections (November – February). The transaction closed in less than two weeks.

For more information on Crossroads Financial, please contact:
Lee Haskin
CEO
lhaskin@crossroadsfinancial.com
561-997-8626

Jarrett Levy
Business Development Officer
JLevy@crossroadsfinancial.com
561-997-8627

The Company:
Designs, manufactures, and supports NextGen compliant avionics systems that improve the safety, efficiency, and affordability of flying.

The Financing Situation:
The Company was seeking to refinance its existing senior credit facility and move on to a new lending relationship to better support the strategic initiatives of the Company. The existing credit facility was based on enterprise value and thus required a comprehensive debt facility (beyond a standard ABL facility) for a full take-out plus additional working capital to support growth.

The Solution:
Super G provided a comprehensive financing solution that consisted of two tranches within the $3.5 million credit facility – $1.5 million interest-only loan and a $2.0 million amortizing term loan. This structure allowed the Company to close quickly (within 3 weeks) and provided debt service flexibilty so that the Company had working cpaital cushion and could focus on business execution. Super G worked closely with the Company’s majority shareholder, Elm Creek Partners, to get comfortable with the business and management team to fund the Company quickly.

For more information on Elm Creek Partners, please contact:
Aaron R. Handler
Co-founder and Partner
aaron@elmcreekpartners.com
214-871-5655
www.elmcreekpartners.com

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.

The Acquirer:

Independent sponsor seeking 2nd lien capital for acquisition financing.

The Target:

Franchisor of after-school enrichment programs (math, reading, writing, and more) for kids ages 5 – 12.

The Financing Situation:

There was a shortfall between the Target’s purchase price and the equity + senior debt raised by the Acquirer.

The Solution:

Super G was able to quickly get comfortable with the Acquirer’s background, recurring revenue business model, growth plans, and the existing cash flow of the business to finance the gap in the acquisition. Super G structured a non-dilutive solution that was subordinated to the Acquirer’s regional bank. The financing allowed for a successful closing within a few weeks of being approached by the Acquirer.

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.