Rental solutions company needed money for capital improvements to free up cash for expansion. We provided $30M in financing at 8.95% to help them gain market share in Canada.
Financing for rental solutions company to gain market share
Collateral Type: Rental and financing contracts
Amount: $30M (potentially upsizing to $40M)
Term: 6 months, renewable
Experienced player in the home rental solutions market formed new entity to make acquisitions in space.
An initial $30M commitment enabled them to firmly commit to the acquisition of a public company. Decision/commitment was needed in two days. Subsequently, the Company added another business into the rollup allowing them to make two purchases concurrently with loan contracts totaling over $600M.
Management and private equity seeded Newco with $117M of subordinated debt ($60M) and Equity ($57M) as first loss/at risk capital. We funded a first position to the Newco of $22M at closing, with an additional $8 Million subsequently funded to-date.
We are in a 2nd position to senior lenders on a large amount of the loan portfolio; however, wind down values available to us total over $100M in aggregate and the market value of the portfolio is considered to be greater.
Currently working on an upsize for the facility to take the overall loan amount to $40M.