Daily News: December 18, 2014

CIT Leads Syndicate Facility for Construction Partners Refi

Construction Partners, a portfolio company of SunTx Capital Partners, refinanced substantially all of the company’s existing debt and consolidated its borrowings into a simplified credit structure. Proceeds will be used to fund a cash distribution to SunTx investors and to support the company’s continued growth. Financial terms of the refinancing and distribution were not disclosed.

ServisFirst and BBVA Compass provided revolving credit facilities, while a CIT-led syndicate structured an asset-based term loan and capex facility. The financing also included a second-lien term loan from The Capitala Group.

Charles E. Owens, president and CEO of Construction Partners, commented “We are pleased to have successfully refinanced and consolidated our credit facilities on favorable terms. With a strong balance sheet and a streamlined credit structure, management is well positioned to continue growing the company through organic initiatives and strategic acquisitions.”

Ned Fleming, managing partner of SunTx Capital Partners, commented, “With an experienced management team and a dedicated work force operating in our nation’s fastest growing region, CPI continues to gain market share and strategically expands its operations. We look forward to the company’s continued success.”

SunTx Capital Partners is a Dallas-based private equity firm.

Construction Partners is an infrastructure and road construction company in the Southeast.