Construction Resources, a Monomoy Capital Partners portfolio company, completed a successful recapitalization with its existing lenders.

Incremental financing was provided by Bank of America, LBC Credit Partners and Orix Leveraged Finance. Baker McKenzie served as legal counsel to Construction Resources in the transaction.

The proceeds of the recapitalization were used to fund a dividend to its shareholders.

Following the recapitalization, Construction Resources remains conservatively capitalized with the continued support of Monomoy, a private equity firm with $1.5 billion of assets under management.

“Construction Resources’ financial performance has significantly exceeded our expectations over the first 10 months of Monomoy ownership,” said Mitch Hires, the chief executive officer of the company. “Together with the Monomoy team, we have generated a significant amount of cash, improved profitability and focused on providing our customers with best-in-class product quality and customer service. This recapitalization underscores the improvements that the management team has made under Monomoy’s ownership, and our conservative capital structure will allow us to grow with our customers over the coming years.”

Construction Resources is the combination of two owner-operated distributors to home builders in the Southeast U.S.