CLIENT
AlphaCredit is a non-regulated specialty finance company that provides specialty loans to the large, unbanked consumer market in Mexico.
SITUATION
AlphaCredit was seeking a financial partner to diversify its funding for the next stage of growth of new loan originations. In addition to its strong collateral base, the company has strict borrower criteria and well established systems and processes to manage operations from the underwriting to portfolio management stages. As AlphaCredit has grown and the loan portfolio matures, it continues to demonstrate an ability to execute by maintaining strong financial and portfolio performance. The company’s increasing volume of business warranted the addition of a more traditional, larger scale institutional funding partner.
ENGAGEMENT
G2 Securities, a division of Brill Securities Inc., Member FINRA, SIPC, was awarded the mandate to facilitate a cross-border structured credit financing for AlphaCredit and develop a strategy to identify the right partner. Due to G2 Securities’, a division of Brill Securities Inc., Member FINRA, SIPC, relationships among potential lenders and investors, the transaction generated significant interest from a diverse mix of structured credit institutions, private equity groups and family office investors.
“G2 Securities, a division of Brill Securities Inc., Member FINRA, SIPC, was able to effectively communicate AlphaCredit’s unique service offering to the U.S. capital markets and utilized a disciplined, tailored process to help the company identify the right partner for their next stage of growth,” said Victoria Arrigoni, Vice President at G2 Securities, a division of Brill Securities Inc., Member FINRA, SIPC,. “We are very happy to see our client partner with such a prestigious firm as UBS Investment Bank.”
OUTCOME
The transaction was successfully executed in 2014 through a $520 million MXN ($40 million USD equivalent) senior secured structured term facility with UBS Investment Bank.
CLIENT
A leading U.S.-based importer, distributor and manufacturer of premium food products (the “Company”). The Company has a long history in the food industry and their constant focus on quality, service and innovation has helped grow their customer base for generations.
SITUATION
The Company sought financing to improve the terms of their existing banking relationship and to provide increased working capital to support their growing business.
ENGAGEMENT
G2 Capital Advisors served as the exclusive financial advisor to the Company to facilitate the financing. Due to G2 Capital Advisors’s relationships among potential lenders, the transaction generated significant interest from a diverse mix of credit institutions and banks.
OUTCOME
The transaction was successfully executed in Q2 2014 through a $45 million asset-based debt financing led by Wells Fargo. Ultimately, the Company was able to lower their borrowing cost and increase their availability while providing greater flexibility to continue to provide excellent service to their customers.
CLIENT
Leigh Delaware Holdings, LLC ., an affiliate company of Leigh Fibers, Inc., is a family owned business headquartered in New England. Leigh Fibers, Inc. is headquartered in Wellford, SC, near the center of the Greenville-Spartanburg area. As a fourth-generation manufacturer of recycled fibers, the company is one of the world’s largest reprocessors of natural, synthetic and specialty fibers. Since 1917 it has diverted more than 14 billion pounds of post-industrial and used fiber from landfills and is currently active in 25 countries around the world.
SITUATION
Leigh sought the ability to broaden and deepen their resources through an acquisition of synergistic capabilities and expertise in supply and trading. ICE Recycling was founded in 2008, as a post-industrial nylon recycling company. ICE quickly built relationships throughout North and South Carolina’s industrial plants and began its path as the ‘TOTAL RECYCLING SOLUTIONS’ company. ICE now services a broad array of industrial businesses, providing engineering and program services, making those companies ‘LANDFILL FREE’. ICE recycles a large assortment of materials including: textiles, plastics, metals, cardboard, and E-waste.
ENGAGEMENT
G2 Capital Advisors served as the exclusive financial advisor to Leigh in facilitating the acquisition of ICE Recycling. G2 Capital Advisors led the acquisition, which was accomplished through our buy-side advisory services.
OUTCOME
The transaction was successfully completed in June of 2014 through a sale of the assets of ICE Recycling to Leigh Delaware Holdings. Larry Gay will remain with the sale and become the President of ICE Recycling.
CLIENT
OnRamp Trailer Leasing Inc., a C.R. England subsidiary, is one of the largest dealers of new and used trailers, service and parts west of the Mississippi. With two state of the art facilities in Reno, NV and Salt Lake City, UT, OnRamp holds exclusive distribution rights for several leading brands such as Wabash, East, Transcraft, Manac, Trail King and Construction Trailer Specialists.
SITUATION
C.R. England’s subsidiary, Equinox Business Solutions, sought to carve-out and divest the OnRamp Trailer division of its business, as it was no longer strategic to their long-term goals.
ENGAGEMENT
G2 Capital Advisors served as the exclusive financial advisor to OnRamp in facilitating the divestiture. Due to G2 Capital Advisors’ expansive industry networks and expertise in the Transportation & Logistics industry, the transaction generated significant interest from a diverse mix of middle market private equity groups and strategic private companies.
“The acquisition of OnRamp is a significant step toward better serving our customers in the semi trailer segment of the transportation industry,” said Wes Gardner, CEO and founder of Prime Trailer Leasing. “We will now add the strong brand recognition of OnRamp’s exclusive distribution rights along with our existing trailer lines.”
OUTCOME
The transaction was successfully executed in Q2 2014 through a sale to Prime Trailer Leasing in Colorado. Prime Trailer rents, leases, sells, buys and remarkets trailers across the nation.
“This transaction is a win-win for both parties and we are thrilled with the outcome,” said Ron Lentz, Managing Director and Transportation and Logistics Practice Leader at G2 Capital Advisors. “This industry continues to experience rapid consolidation and G2 Capital Advisors is proud of yet another successful sector transaction.”
CLIENT
Airlie Group (“Airlie”) is a global, multi-strategy investment manager that manages a diverse portfolio of credit strategies and control equity investments on behalf of its pooled investment vehicles.
SITUATION
Airlie’s portfolio company, Eastern Montana Minerals (“EMM”), was seeking long-term financing to monetize its royalty cash flow stream. In addition to its predictable royalties, EMM’s credit strengths include coal reserves, mineral rights, additional reserve collateral provided by the parent company and strong historical financial performance. The mining royalties represent EMM’s primary source of cash flow, which is generated through third-party mining and transportation of coal on and around the company’s properties.
ENGAGEMENT
G2 Capital Advisors was awarded the mandate to facilitate a structured credit financing for EMM and develop a strategy to identify the right partner. Due to G2’s relationships among potential lenders and investors, the transaction generated significant interest from a diverse mix of structured credit institutions, private equity groups and family office investors.
“Mining royalties as the basis for a structured credit are certainly not a common approach,” said Jeffrey Unger, CEO of G2 Capital Advisors. “We are pleased with the outcome of this complex transaction and are confident all parties have achieved a truly productive solution.”
OUTCOME
The transaction was successfully executed in 2014 through a $41.5 million senior secured structured term facility syndicated and led by Deutsche Bank.