SG Credit Partners provided a $2 million second lien growth capital loan to a founder-owned staffing company which provides a full suite of employment solutions to IT, life sciences, and business services clients.
The company had realized strong revenue growth over the last few years and had a strong pipeline for continued growth. The company’s bank, Wells Fargo Capital Finance, was in the process of increasing its revolving line-of-credit facility to scale with business growth and wanted subordinated capital to provide liquidity cushion. Additionally, the principals of the company were sensitive to dilution and wanted a solution without a warrant/equity requirement.
SG Credit Partners grew comfortable with the business due to its strong client base, including large fortune 1000 clients, historical profitability, strong growth trend, and a robust pipeline of new business. SG provided a non-dilutive loan behind Wells Fargo with structured amortization to provide flexibility around the company’s projected cash flow.
The transaction closed within three weeks and Wells Fargo successfully increased their accounts receivable facility.