Super G Capital provided a $2 million bifurcated credit facility to a cloud-based media monitoring and intelligence platform with contracted, recurring revenue.
The new facility consisted of a $750k interest-only loan and a $1.25 million amortizing term loan.
The company had a line of credit as well as a term loan in place with a bank. Due to lender fatigue and technical default (financial covenant compliance) the bank wanted to exit the credit.
Super G was comfortable with the business due to its recurring revenue, continued equity support and strong management team. The Super G facility was used to retire the bank’s credit facility as well as provide additional working capital.
Super G provided this structure to bridge the company to a new senior lender. The new senior lender will refinance Super G’s interest-only loan, whereupon Super G will then subordinate its term loan under its typical second lien structure.