Fifth Third Business Capital acted as lead lender and administrative agent on the closing of a new $70 million senior credit facility for Lignetics and its various subsidiaries.
Fifth Third’s credit facility was used to facilitate the acquisition of Energex Corporation and will assist Lignetics going forward with capital expansion, growth and working capital funding.
Based in Louisville, CO, Lignetics is a residential wood pellet manufacturing company in the U.S. with a production capacity of approximately 1.2 million tons of wood pellets per year. With 14 operating locations in the U.S. and one in Canada, Lignetics provides wood pellets and ancillary products utilized in several applications including home heating, animal bedding, BBQ pellets, cat litter and various other industrial uses.
Lignetics is a portfolio company of New York-based Taglich Private Equity, a value-oriented financial sponsor that is focused on investing in the lower middle-market. The company specialize in recapitalizations, management buyouts and majority equity investments, targeting manufacturing, business services and consumer products companies. Since inception in 2001, the firm has invested more than $650 million, funded primarily with capital provided by Taglich Brothers, a brokerage firm and registered investment advisor managing capital in both public and private investments.
“We feel that we have found a great partner in Fifth Third who truly understands our business,” Will Morris, managing director at Taglich Private Equity, said. “We are very excited about the Energex transaction that will enable Lignetics to continue to grow our various eco-friendly product offerings and continue to explore future M&A opportunities.”
“We appreciate our relationship with Taglich and the opportunity to be part of the financing for Lignetics, a leading company in its niche with a very impressive track record of growth in sales and earnings,” Michael Sharkey, president of Fifth Third Business Capital, said.
Fifth Third Business Capital provides asset-based financing to large corporate and middle market companies throughout the United States and Canada from $5 million and up.
