Tombstone Financing Details: Transaction Type: Senior Financing
Loan Amount: $5 Million
Financing Provided By: Opportunity Fund
Facility Pricing: Opportunity Fund Rates
Collateral: All Company Assets
Use Of Financing: Acquisitions, Debt Refi And Working Capital
Length Of Term: Three Years
Customary Covenants: Required
Yes Today’s Tombstone Narrative: We souced a new $5 million senior facility for a client in the direct-to-consumer industry. The company will use the financing to acquire new targets in this market segment and for general working capital purposes. The company has a successful history of acquiring operators selling skin care products, cosmetics, nutritional supplements, housewares, and gift products.
In some cases, the acquired operators were unprofitable prior to their acquisition, then subsequently turned around by the company through the use of operational synergies and strict operational disciplines. The new senior facility was secured by all corporate assets. In addition, the lender received warrants in the company as part of the financing’s structure. A portion of the new financing was also used to refinance existing corporate debt.