Project Description
Project Blox
SITUATION
ABC Networks, was a strategic buyer looking to purchase the remaining two divisions of The Company for $125MM
GHOST TREE SOLUTION
- $90MM facility with $30MM First-Out Revolver, $25MM Middle-Out Loan, and $35MM Last-Out Term Loan
- Borrowing Base: eligible A/R, eligible unbilled A/R, eligible inventory, unencumbered real estate
SOURCING
Proprietary network
CORE PRINCIPLES
FOCUS ON DOWNSIDE PROTECTION
Hard-asset backed loan underwritten to liquidation value.
ATTRACTIVELY STRUCTURED
Low advance rates against assets resulting in low LTVs.
MULTIPLE PATHS TO EXIT
Strong sponsor implementing cost-cutting plan to lead to refinancing, liquidation value covers loan.
ASSET COVERAGE
A/R to strong counterparties accounts for most of borrowing base, 40% advance rate against real estate.
AVOID DISTRESS
Significant liquidity post-acquisition and large equity check written by sponsor to support the Company.
Digital market services company providing high-quality web development, communications, and infrastructure.
INVESTMENT DATE