Super G Capital provided a $900,000 stretch facility to a family-office backed U.S. manufacturer and supplier of specialty textiles.
The company was in the process of refinancing its existing senior credit facility with a lower cost ABL facility. However, there was insufficient collateral availability to pay off the entire senior credit facility balance. The company’s M&E was already levered so the shortfall could only be solved with additional equity and/or a cash flow based term loan, often referred to as a “stretch piece.”
Super G specializes in providing stretch pieces in a second lien position behind ABLs and worked closely with the company’s new senior lender, Lighthouse Financial, to quickly close a comprehensive debt refinancing. Super G’s second lien stretch piece allowed the company to close its lower cost, flexible ABL facility with Lighthouse, thus avoiding an additional equity contribution. As a result of this structure, the company lowered its overall cost of capital significantly.
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