Super G provided a $2 million non-dilutive second lien term loan to a sponsor-backed provider of employee healthcare management services.
The company was seeking additional working capital for seasonal Q4 employee enrollment, a cushion to continue growth and run an M&A process and minimum liquidity to stay in compliance with bank covenants. The company’s senior lender had provided an asset-based revolving line of credit as well as a large enterprise value-based term loan but 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 worked closely with the company’s senior lender to provide a loan with a payment schedule tailored to the company’s seasonal cash flow, growth initiatives and bank covenants. Given the company’s strong financial performance, Super G felt comfortable with the seasonality of the business total leverage, enterprise value, experienced management team and private equity sponsor.
