Daily News: December 11, 2014

CapX Provides GRO-WELL Mezzanine Debt Loan

CapX Partners closed on a $5.5 million mezzanine debt loan to GRO-WELL Brands Inc. to support the company’s growth needs.

GRO-WELL sought a mezzanine debt capital provider that could help its senior bank lender replenish their revolving line of credit and support the company’s next revenue growth initiative. CapX designed a $5.5 million second lien mezzanine debt solution to address immediate capital needs of the company that was non-dilutive to ownership and acceptable to GRO-WELL’s senior lender. In addition, CapX looked to deliver future value by assisting GRO-WELL with its 2015 capital expenditure financing — a financing combination not often found in middle market lending.

“Laser like focus, quick understanding of the business model, no loss leaders and most importantly, delivered the desired result on time. The perfect combination! Would not hesitate to recommend to other decision makers and bankers” says Alan Langer, Chairman of the Board, GRO-WELL Brands, Inc.

“CapX appreciates the GRO-WELL platform created by their ownership and management. The Company’s competitive advantages in sourcing, trusted brands and strong retailer relationships convinced CapX to invest in GRO-WELL’s next growth phase. We look forward to being part of GRO-WELL’s continued success” says Jeffry S. Pfeffer, Managing Partner, CapX Partners.

GRO-WELL provides all-natural and organic lawn and garden products.