Second Avenue Capital Partners completed three recent transactions in the furniture, home furnishings and beauty sectors, including a $10 million credit facility for a RTA furniture manufacturer, a $25 million term loan for a home goods retailer and a $10 million credit facility for a beauty brand developer.
The furniture manufacturer and distributor in the RTA furniture category turned to Second Avenue Capital Partners for a $10 million credit facility to provide additional working capital in support of new growth opportunities. As part of its portfolio of store and digital retailers, the company sells to retailers such as Wayfair, Pottery Barn, The Container Store, West Elm, Home Depot, as well as to independent designers and hospitality businesses.
“Our relationship with the larger portfolio of brands made this transaction an easy fit for SACP,” Mike Sullivan, managing director of Second Avenue Capital Partners, said. “The management team has demonstrated an ability to identify strategic acquisitions and successfully execute on their business plans. We’re pleased they turned to us for the financing needs of this recent acquisition. We recognize the value this company brings to the RTA furniture category with strengths in its manufacturing and distribution capabilities. By leveraging the insight gained from our affiliates, we can support their continued growth.”
The home goods retailer was looking to strengthen its financial position and expand its resources to support strategic objectives. As part of an overall plan to increase liquidity and repay debt, Second Avenue Capital Partners provided the company with a $25 million term loan. The company used the proceeds to retire debt and gain flexibility with sourcing additional merchandise.
“As a lender with retail affiliations, it’s important for SACP to support other retailers and give them the flexibility they need to thrive and preserve jobs,” Chris O’Connor, president of Second Avenue Capital Partners, said. “This is the type of transaction we were built for, one in which we can leverage our deep retail experience. We have a passion for helping companies overcome challenges, and this customized debt solution allows the management team to focus on merchandise and operational improvements.”
The beauty brand developer needed to leverage its accounts receivables and inventory for a more flexible financing arrangement to replace an existing facility. Second Avenue Capital Partners structured a $10 million credit facility to accommodate the company’s needs and time constraints. By securing the credit facility, the company is able to access resources and advance its long-term business plan.
“This was a fast and interesting deal for us, one we are really excited about,” Sullivan said. “We have other clients in the beauty industry, but this is more about concept, creative, product development and delivery. They analyze consumer trends and help build impactful brands that have a well-defined target in the marketplace. Our strength and affiliations in consumer products make SACP an ideal lending partner, adding value and support to take the business to the next level.”