Daily News: April 21, 2017

Super G Provides Second Lien Facility to e-Commerce Brand

Super G Capital provided a $2.5 million second lien working capital facility to a venture capital-backed subscription e-commerce brand business.

The company is in growth mode, rolling out direct-to-consumer brands in addition to its subscription e-commerce business, and was seeking a non-dilutive solution as a bridge to a strategic sale or next equity round. The company’s management team wanted excess working capital cushion to remain focused on growth initiatives and maintain compliance with its bank’s liquidity covenant.

Super G was able to quickly get comfortable with the company’s value proposition, growth strategy, management team and institutional backers. The company was able to demonstrate a clear path to profitability in a worst case scenario of no strategic sale or additional equity financing. Super G structured a flexible, non-dilutive second lien loan subordinated to the company’s senior lender.