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.
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
800 Corporate Pointe, Suite 300
Culver City, CA 90230