Super G Capital provided a $2 million bridge loan to an outsourced pharmaceutical service provider conducting clinical research.
The company had a cash flow-based term loan with its bank and was in technical default. A combination of lender fatigue, lumpy sales and cash collections due to the timing of contracts, along with high monthly payments on the term loan, led the company to seek relief. An asset-based lender was not a solution due to timing and the term loan take-out amount would not conform to a borrowing base.
Super G provided a senior secured, interest-only bridge loan for a full take-out of the bank and working capital to support the company’s immediate financing needs – a flexible structure which allowed the company to operate its business with sufficient liquidity and buy time to run a full process for a new bank relationship.
Super G closed the loan within two weeks, which benefited both the bank (as it removed the term loan from special assets) and the company (as it provided both working capital and debt service flexibility).