Super G Capital provided a $2 million second lien working capital loan for a sponsor-backed provider of employee healthcare management services.
The borrower was seeking additional working capital for seasonality around Q4 employee enrollment and a cushion to continue growth and run an M&A process. The company also required minimum liquidity to stay in compliance with bank covenants.
The company’s senior lender is providing an asset-based revolving line of credit as well as a large enterprise value-based term loan and could not extend additional credit. Since the company would like to pursue a liquidity event within 18 months, a non-dilutive solution was important to management as the business continues to grow and increase its enterprise value.
Super G was able to work provide a $2 million non-dilutive second lien term loan with a payment schedule tailored to the company’s seasonal cash flow, growth initiatives and bank covenants.
