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