Investment Case Studies
ACI Electronics, LLC
Denver, Colorado
www.acielectronics.com
Unsponsored Recapitalization & Acquisition Financing
ACI is a distributor of high reliability electronic components to the aerospace and defense industries.
Transaction included:
- Raising a new senior debt facility to support the growth of the Company
- Refinancing of the existing outside junior capital investors
- Providing a shareholder dividend
- Completion of a sizeable add-on acquisition at initial closing
PNC Mezzanine provided $18.5 MM of capital for the transaction:
- $5.0 MM of senior secured second lien debt
- $10.0 MM of senior subordinated debt with warrants
- $3.5 MM of junior (PIK) subordinated debt with warrants
PNC Mezzanine strengths:
- Willingness to undertake complex transaction with multiple components
- Flexibility in investment structure
- Assisting management in raising senior debt financing
- Ability and desire to support ongoing consolidation strategy
"PNC Mezzanine approached the transaction with a very flexible attitude and, after listening to the goals and needs of the various shareholder groups, they provided us with a financing solution that was the best fit for all the shareholders and the Company going forward. They remained flexible throughout the deal as we dealt with the complexity of completing a recap and an add-on acquisition at the same time."
Bolttech, Inc.
West Newton, Pennsylvania
www.bolttech.com
Unsponsored Management Buyout
Bolttech is a provider of industrial bolting tools, services and rentals for various industries including oil refinery and power generation.
Transaction included:
- Supporting the acquisition of the Company by management and several individual investors
- Raising senior credit facilities to support the growth of the Company
PNC Mezzanine provided $20.0 MM of capital for the transaction:
- $5.0 MM of senior secured second lien debt
- $8.0 MM of senior subordinated debt with warrants
- $7.0 MM of junior (PIK) subordinated debt with warrants
PNC Mezzanine strengths:
- Ability to approve and close transaction in a compressed timeline
- Structuring and raising the senior debt financing
- Flexibility in investment structure
"PNC Mezzanine's financial expertise, strong experience in the industrial sector and commitment to growth companies in attractive industries will be invaluable. With their backing, our management team is well positioned to continue to accelerate Bolttech's strong growth."
ABP Corporation
Boston, Massachusetts
www.aubonpain.com
Unsponsored Management Buyout
Au Bon Pain is an operator and franchisor of fast-casual bakery cafés.
Transaction included:
- Supporting the management buyout of the Company from corporate parent
- Structuring a new senior debt facility to support the growth of the Company
- Leading the $34.0 million junior capital financing
PNC Mezzanine provided $20.0 MM of capital for the transaction:
- $10.0 MM of senior subordinated debt with warrants
- $4.7 MM of junior (PIK) subordinated debt with warrants
- $5.3 MM of preferred stock
PNC Mezzanine strengths:
- Structuring and arranging the senior debt financing
- Flexibility to accommodate seller’s equity roll-over and deal nuances
- Providing management with substantial equity incentives
- Structuring to allow for seller’s equity rollover and shared governance
"It has been an exciting several years to be partners with PNC Mezzanine. They have provided unwavering support to Au Bon Pain, and their team has done everything that they promised, exactly the way it was promised. I would recommend PNC Mezzanine to management teams looking for a smart financial partner"
Cape Electrical Supply, LLC
Cape Girardeau, Missouri
www.capeelectric.com
Sponsored Consolidation Strategy
Cape Electrical Supply is a value-added distributor of electrical and telecommunications products.
Transaction included:
- Supporting the acquisition of the Company by Svoboda Capital Partners, LLC
- Underwriting the consolidation strategy
- Structuring the debt facility to accommodate future acquisitions
PNC Mezzanine provided $21.8 MM of capital for the transaction:
- $14.8 million of senior subordinated debt
- $7.0 million in an equity co-investment
PNC Mezzanine strengths:
- Ability to provide substantial equity co-investment
- Competitive structure and pricing during turbulent credit market
- Extensive experience investing in distribution companies
- Strong desire to support add-on acquisitions and underwrite consolidation strategy
"PNC Mezzanine Capital's depth of experience investing in distribution companies, ability to provide a substantial equity co-investment and partnership approach was invaluable throughout the transaction. By joining forces with a firm who shares our strong appetite for future add-on acquisitions, we are well-positioned to execute upon a growth strategy that will provide even greater opportunities for all involved parties."
