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Golden West Food Group
Capital Markets Advisory
Company Overview
Founded in 1977 and headquartered in Vernon, California, Golden West Food Group, Inc. (“GWFG”) is a one-stop manufacturer and supplier of premium, value-added food products with sales of over $1.0 billion.
The Company hired KKAP Advisors with the goal to evaluate financing alternatives to its incumbent 10-year+ banking syndicate. Goals were to increase financing availability, introduce lenders that could support aggressive growth initiatives, provide shareholder liquidity and secure flexible terms and conditions.
Results
KKAP Advisors successfully arranged a $475 million cashflow Senior Credit Facility with a new lending syndicate, achieving the following:
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Attractive pricing and nearly 70% reduction in fixed charges (e.g., term loan amortization)
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Substantial upsizing of credit facility by nearly $200 million
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Substantial unused Revolver availability at close
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Reduction of financial covenants to 2 from 4 under prior facility
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Carve-out and Shareholder Distribution of assets valued at ~$75 million
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Flexible payment conditions and restricted payment baskets
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Wide cushion against financial covenants
Key Drivers of Success
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Targeted process to drive scarcity value to enhance competition and negotiate more favorable terms
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Careful management of ALL information shared with parties
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Anticipate lender concerns to best position Company
Quick Bridge Funding, LLC
Capital Markets Advisory
Company Overview
Quick Bridge is a privately-held financial services firm headquartered in Irvine, California with a satellite office in New York City. Quick Bridge provides small business loans and short-term working capital loans for small to mid-sized businesses nationwide.
Quick Bridge identified a substantial unmet financing need for SME’s and lower-middle market businesses.​ The Company Founders financed initial operations through friends and family subordinated notes, but quickly ran-out of capital due to overwhelming loan demand​. KKAP professionals were hired to arrange a senior credit facility to provide funding to Quickbridge to substantially grow its origination platform, loan portfolio and for general corporate purposes.
Results
Successfully arranged a Senior Credit Facility with a bank lender in a targeted marketing process​. Company objectives were met including:​​
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Very attractive pricing that significantly improved Net Interest Spread​.
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Flexible borrowing base structure with a streamlined reporting and bank oversight/approval​.
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Room for facility to be upsized once loan portfolio was seasoned.​
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Within 18-24 months of the Transaction, Quick Bridge grew its loan portfolio, Book Value of Equity and Profit Before Tax, and had a successful exit to a larger specialty finance company.
Key Drivers of Success
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Outreach to a diverse group of potential senior lenders that were not previously familiar with the company.
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Prepared a comprehensive financial model that demonstrated the substantial profitability and cashflow of the business under different growth scenarios.
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Mitigated potential risks to secure attractive advance rates.
Includes transactions completed by KKAP professionals at prior Firms
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