Welcome to the October issue of ACM Capital Partners’ Value Line newsletter. In this issue, you will read about our successful placement of an $8 million line of credit for our telecom client, two new engagements – a restructuring engagement for a South Florida bottler and a quality of earnings project for an airline charter acquisition in Florida, and the launch of our new website.
ACM OBTAINS $8 MILLION ABL FINANCING FOR TOWERCOMM
The firm announced it has obtained $8 million in asset based financing from Hennessey Capital, a division of Hitachi Capital America Corp. for its client, TowerComm, a veteran of wireless tower services based in Raleigh, North Carolina. TowerComm’s core business is network and construction services, including new site builds, site modifications, radio work, and site maintenance.
ACM was hired by the equity sponsor to assist TowerComm in late 2011 during a trough in the industry cycle. They used this slow period to streamline the operations, restructure legacy debt and position the company for growth. They then brought in a permanent CEO from within their ranks to execute the growth strategy. As a result, the company doubled its revenue in 2012 and again in 2013 under new CEO, Mike Rowe’s leadership; and is poised for a phenomenal year in 2014. In order to fully execute the growth strategy, the company needed a larger and more competitively priced asset based loan with which to fund working capital. “We recognized the need, listened carefully to Mr. Rowe and found the right partner in Hennessey Capital,” said Jim Martin, ACM’s Managing Partner.
According to Rowe, “ACM led a very smooth process which was just three months long. They brought us various lending options from which to choose. In the end, we selected Hennessey Capital due to their competitive pricing coupled with their experience in our industry. The ABL facility will provide TowerComm with strong availability and excess liquidity which will enable us to grow the business. ACM delivered value far exceeding my expectations.”
“ACM Capital Partners did a great job in arranging Hennessey’s line of credit to TowerComm. They recognized that, beyond our extremely competitive loan structure, we have a sound understanding of and eagerness to support the fast-growing cellular infrastructure industry,” said Toby Dahm, Senior Vice President & ABL Portfolio Manager of Hitachi Capital America Corp.’s Michigan office.
ACM LANDS TWO NEW ENGAGEMENTS
ACM has been hired by a South Florida bottler to assist the lenders with determining the best course of action for this struggling enterprise. Our professional’s main focus is to determine how quickly the bottling lines can generate sufficient cash flow to fund operations and determine the timing of the same. According to ACM Director Michael Samach, ‘Unfortunately, the client does not have the luxury of time to figure this out. We need to understand the cash flow so that we can enable the lender to make critical decisions as to whether to continue to fund or shut the business down.”
The firm also announced a quality of earnings assignment for a charter airline in Florida. “The aviation industry is one of our firm’s strengths,” said ACM’s Jim Martin. “We were able to deliver a thorough report for the client which enabled them to complete the target acquisition.”
ACM LAUNCHES NEW WEBSITE
ACM launched a new and improved website www.acmcapitalpartners.com. “This site is another example of our commitment to the latest technology,” said Martin. “We continue to re-invest in technology to ensure that clients, capital sources and other constituents are provided the most timely and useful information with which to make informed decisions.”