Fifth Third Business Capital, a division of Fifth Third Bank, National Association, announced it acted as lead lender and administrative agent on the closing of a new $70,000,000 Senior Credit Facility for Lignetics, Inc. and its various subsidiaries ("Lignetics").

Based in Louisville, Colorado, Lignetics is a market leader in turning wood waste into a range of premium eco-friendly 100% natural products across several consumer categories. Lignetics is the largest 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 US 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. Fifth Third’s credit facility was used to facilitate the acquisition of Energex Corporation and will assist the company going forward with capital expansion, growth and working capital funding.

Lignetics is a portfolio company of New York-based Taglich Private Equity, LLC, a value-oriented financial sponsor that is focused on investing in the lower middle-market. They specialize in recapitalizations, management buyouts and majority equity investments, targeting manufacturing, business services and consumer products companies. Since inception in 2001, they have invested more than $650 million, funded primarily with capital provided by Taglich Brothers, Inc., a brokerage firm and registered investment advisor managing capital in both public and private investments. Taglich focuses on finding sound investment opportunities with capable management and delivering significant growth resources and capital to portfolio investments.

“We feel that we have found a great partner in Fifth Third who truly understands our business,” said Will Morris, managing director at Taglich Private Equity. “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,” said Michael Sharkey, president of Fifth Third Business Capital.

About Fifth Third Business Capital

Fifth Third Business Capital provides creative asset-based financing to large corporate and middle market companies throughout the United States and Canada from $5 million and up. The team serves manufacturers, distributors, service companies, and retail chains with sales from $25 million and up, primarily with needs related to acquisitions, dividend recapitalizations, growth, debt restructurings, capital expenditures, and turnarounds. Fifth Third Business Capital provides flexible structures that include revolving lines of credit and term loans, all supported by accounts receivable, inventory, equipment, real estate, and intangibles. As part of the overall financing, Fifth Third Business Capital also selectively considers cash flow term loans supported by sufficient operating earnings to repay these loans in a timely manner. Fifth Third Business Capital is a division of Fifth Third Bank, National Association. Credit products are subject to credit approval and mutually acceptable documentation. In the United States deposit and credit products offered by Fifth Third Bank, National Association. Member FDIC. Equal Housing Lender.

About Fifth Third Bancorp

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of December 31, 2019, Fifth Third had $169 billion in assets and operated 1,149 full-service banking centers and 2,481 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of December 31, 2019, had $413 billion in assets under care, of which it managed $49 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at 53.com. Fifth Third’s common stock is traded on the Nasdaq® Global Select Market under the symbol “FITB.” Fifth Third Bank, National Association was established in 1858. Deposit and Credit products are offered by Fifth Third Bank, National Association. Member FDIC.

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