US Capital Provides Holding Company Term Loan
US Capital Partners announced it provided a $10 million term loan for a diversified holding company headquartered in the Northeast U.S.
As a diversified holding company for promising high-growth enterprises, the company has a number of operating subsidiaries, including a service provider and two component manufacturers for the aerospace industry. The company required additional debt financing for general business purposes and to provide liquidity for new strategic targeted equity investments, and turned to US Capital Partners for assistance.
“We are delighted to have provided $10 million in financing for this Connecticut-based enterprise,” said Jeffrey Sweeney, CEO and managing director at US Capital Partners. “The company’s operating subsidiaries already had maximum leverage, and any additional leverage in those businesses would trip existing loan covenants. US Capital Partners was therefore able to use the Company’s stock as collateral for additional leverage. This allowed US Capital Partners to provide $10 million in additional capital for the company, while the company’s existing operating subsidiaries remained fully in compliance with their respective loan terms. In addition, this new debt financing is specifically designed to scale as the company continues to expand through further acquisition or organic growth.”