SSG Agents $42MM Financing for Watermill’s Acquisition
SSG Capital acted as the exclusive investment banker to Watermill Group to fund its acquisition of Superior Tube Company and Fine Tubes. The transaction, which consisted of a $25 million revolver and a $17 million senior secured term loan, closed in September 2012.
Watermill is a strategy-driven private investment firm based in Boston. Watermill executed a letter of intent to acquire Superior and Fine Tubes and shortly thereafter retained SSG to help deliver creative financing alternatives in light of the complexity of the transaction, including the fact that over half of the collateral base was located in the United Kingdom.
Superior and Fine Tubes both manufacturer customized small diameter tubular products for a variety of desirable end markets. They fabricate seamless and welded tubing from high-value specialty alloys including stainless steels, titanium, and high nickel alloys. Superior’s operations are in Collegeville, PA while Fine Tubes is located in Plymouth, U.K.
SSG worked closely with Watermill to negotiate a transaction structure that included a senior working capital lender and a senior term loan lender that would both provide financing in the United States and internationally. The senior term loan lender also was able to lend beyond the fixed asset collateral pool and minimize amortization at the outset of the term so that more capital could stay in the business to support Watermill’s growth strategy.
SSG Capital Advisors is a national boutique investment bank that assists middle-market companies through complex financial situations.