SG Credit Partners Provides $2.1MM Unitranche Loan – Collateral Based Term Loan A + Cash Flow Based Term Loan B

The Company: Sponsor-backed e-tailer of aftermarket auto parts focused on a niche of the broader aftermarket industry. The Company sells through its Company-owned DTC eCommerce channel as well as through 3rd party marketplaces. Revenue: $37MM | EBITDA: $1.4MM.

The Financing Situation: Over the past few years a series of events negatively impacted the financial performance of the Company including a heightened tariff environment in 2019. The Company was forced to recapitalize its balance sheet and restructure operations to right-size the business. The Company successfully executed its recapitalization in early 2020 by securing a temporary bridge working capital facility with an opportunistic lender. The bridge loan was off strategy for the new lender so it was seeking to exit the credit.

The Solution: SG was able to get comfortable with the Company’s proven operational turnaround, proforma profitability, inventory and receivable working capital assets, and supportive stakeholders including the sponsor, CEO, and key vendors. SG’s unitranche loan structure included a $1.4MM collateral based, interest-only term loan A driven by a borrowing base (AR and inventory) and a $700K term loan B structured around proforma cash flows. SG was able to close the deal within 2 weeks of a signed term sheet.

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.