SG Credit Partners Provides $3.35 Million to Pharmaceutical Products Company

Dec
23
2020

The Company: A newly formed pharmaceutical company setup specifically to acquire, promote, and sell four prescription pharmaceutical products.

The Financing Situation: Before SG became involved, the Company had agreed to purchase four prescription pharmaceutical products using debt financing with an alternative lender. Due to capital raising issues, this lender defaulted on its financing obligation, which eroded the seller’s confidence that the deal would be finalized. When SG was introduced to the Company, the seller was fatigued and highly motivated to consummate the transaction within a two week period or was prepared to walk away. Additionally, the Company’s senior management did not want to risk losing the opportunity to acquire the assets at an attractive purchase price. Given the Company’s pro-forma revenue level was below SG’s investment criteria, SG looked to the personal balance sheet of the founder to structure a transaction and execute within the short timeframe.

The Solution: SG was able to work quickly and creatively to provide a $3.35MM loan structured primarily around the founder’s personal assets (real estate and marketable securities). SG’s speed to close allowed the Company to close the asset purchase and begin rebuilding the revenue base back to historical levels. SG’s facility is viewed by the Company as bridge financing until a broader capital facility can be raised.

This transaction highlights SG’s ability to structure and underwrite guarantor-based loans requiring creativity, flexibility, and speed to close.


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California loans are made pursuant to SG Credit Partners, Inc.'s California Department of Corporations Finance Lender License No. 60DBO-87290. Credit approval is subject to SG Credit Partners, Inc.'s credit standards, and actual terms (including actual loan amount) may vary by applicant. SG Credit Partners, Inc. requires certain supporting documentation with each new application. Complete disclosures of APR, fees, and payment terms are provided with each loan and are available from SG Credit Partners, Inc. at 23 Corporate Plaza, Suite 100, Newport Beach CA 92660, telephone 1-800-348-0232.