Specialty finance company CapX Partners announced the recent closing of a $7.5 million loan to meet the existing and future debt financing needs of Gray Line of Tennessee (GLT), a charter coach, sightseeing and tour bus company.

GLT operates more than 100 commercial vehicles providing charter coach, regional transit, casino runs, school bus services, and sightseeing tours offering visitors to Nashville.

CapX Partners said XMi Holdings acquired a controlling interest of GLT in 2012 in partnership with the state of Tennessee’s innovative “TNInvestco” program.

Phase One Capital, working on behalf of GLT, approached CapX looking for a combination of growth capital and new term debt financing that could be used to refinance Gray Line’s existing bank facility and potentially provide a dividend payout to one of the founding brother’s roll over value from the original private equity transaction. GLT parent, XMi, offered their ability to finance future capex spend via a new captive leasing special purpose entity if CapX could focus on both the bank debt refinance and former shareholder redemption.

“It’s easy to see why Jeff and the CapX team have been as successful as they’ve been. They focus on the important issues, move quickly, and are easy and pleasant to work with,” says XMi’s James C. Phillips, Jr.

Gray Line provided an updated asset appraisal on the company’s fleet and shop machinery and equipment giving CapX a reliable starting place for a re-leveraging of the revenue producing assets. CapX appreciated XMi’s conservative approach to accepting new leverage on the balance sheet and its commitment to inject additional capital into new fleet additions.

CapX provided a flexible piece of senior term debt secured by GLT’s vehicle fleet that mirrors mezzanine debt with an interest only period along with amortization following through to a five-year balloon payment. In addition, XMi secured a working capital lender to provide a revolving line of credit secured by accounts receivable to support the company’s day-to-day liquidity needs.

Chicago-based CapX Partners a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2 million to $20 million range.