Super G provided $2 million to a wine producer as a “last out” participant in a facility led by Ares Commercial Finance.

In the early stages of a capital raise, the wine company was seeking additional working capital to create availability on its line of credit and fund growth initiatives. The company’s asset-based lender, Ares Commercial Finance, was providing a flexible asset-based credit facility with favorable advance rates on accounts receivable and inventory and preferred that the company fund any additional capital needs with junior capital.

Under similar situations, Super G’s typical solution is to provide a second lien loan and enter into an intercreditor agreement with the senior lenders. However, since there were multiple senior secured equipment lenders in this situation, negotiating and entering into intercreditor agreements with all would be cumbersome and delay the closing timeline.

Super G and Ares determined the most efficient process to close the loan was a junior participation agreement in which Super G participated in Ares’ credit facility as a “last-out” participant. This allowed the company to obtain an additional $2 million of capital in less than three weeks via Ares’ senior working capital facility.