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SG Credit Partners Provides $2 Million Second Lien Cash Flow Loan Secured By Real Estate
October 31, 2019
Source: SG Credit Partners
The Company: Provider of IT managed services and cloud collaboration solutions. The Company’s management team owns corporate real estate held in a LLC outside of the Company.
The Financing Situation: The Company was in need of upfront working capital for new contracts, but did not have availability on its bank ABL. The bank ABL had recently closed its credit facility and was not able to provide additional financing until there was a six month track record of positive financial performance. Management was intent on executing the new contracts and was willing to provide a second deed of trust on its corporate real estate outside of the business as security for a loan.
The Solution: SGCP quickly underwrote the Company and was able to get comfortable with projection based debt service since there was sufficient equity in the corporate real estate as security. SGCP provided a $2 million second lien cash flow loan to the Company secured by a second deed of trust on the corporate real estate which enabled the Company to execute on its new contracts and grow the business.
SG Credit Partners (formerly known as Super G Capital) provides $1 to $10 million structured debt solutions to lower middle market businesses across the country in need of financing for working capital, growth capital, acquisition capital, or special situations. We lend up to $10 million per transaction in the form of a structured term loan (6-36 month term) with flexible repayment, typically as a subordinated (second lien) lender and in certain cases as a senior lender to companies that need financing to become bankable. Headquartered in Southern California, the SG Credit Partners team has provided in excess of $250 million to 150+ borrowers across a variety of industries.