Project Description

Project Fusion

SITUATION

The Company was looking to refinance existing debt and attract growth capital at the OpCo and partially fund the sale of 50% equity at HoldCo to a new sponsor.

GHOST TREE SOLUTION

  • $30MM senior secured loan secured by a perfected, first-priority security interest and lien on all of the assets of the borrower
  • $4.5MM HoldCo loan secured by the equity interest in the Company and by a personal guarantee from a private investor who purchased a 50% stake in the Company

SOURCING

Proprietary network

CORE PRINCIPLES

FOCUS ON DOWNSIDE PROTECTION

Structured as a cash flow loan but secured by a fleet of vehicles that could be liquidated in bankruptcy.

ATTRACTIVELY STRUCTURED

OpCo loan had full financial covenants and heavy amortization. Personal guarantee covered HoldCo loan.

MULTIPLE PATHS TO EXIT

Significant liquidity post-close, traditional ABL available with additional scale, hard asset liquidation value.

ASSET COVERAGE

Given cash interest and amortization, fleet value at 2008-09 values covered loan within 2 quarters of close.

AVOID DISTRESS

Strong liquidity post-close, new equity capital contributed, and cash flow positive business before growth CapEx.

Provider of affordable and flexible TLC licensed and insured vehicles to ride-share drivers in the NYC Metro Area.

INVESTMENT DATE

August 2018

PROJ. INVESTMENT TERM

3 Years

SECURITY

Senior Sec. Term Loan

TOTAL TRANCHE SIZE

$30MM

ORIGINATION/EXIT FEES

5.0%

COUPON

L+800

LTV

75%

REALIZED IRR/MOIC

15.7%/1.2x

Project Peer
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Project Blox