SG Credit Partners completed a $1.5 million second lien loan for an industrial recycling company that sells processed and unprocessed materials to domestic and international mills, foundries, and other material processors.
The family-owned business has $40 million of revenue.
Management was exploring a sale of the company and needed additional working capital beyond the availability on its asset-based credit facility. The company’s bank ABL approached SG to provide a second lien working capital loan to enable the company to run a sale process without any potential for liquidity shortfalls.
SG Credit Partners provided a $1.5 million loan with interest-only payments to give the company maximum liquidity throughout the sale process. The loan funded within three weeks of a signed term sheet, alleviating liquidity constraints and allowing management to focus on selling the company.