Welcome to the April issue of ACM Capital Partners’ Value Line newsletter. In this issue, we have detailed the successful recapitalization of our medical device client as well as further activities of ACM Capital Fund I and Fund II.
ACM COMPLETES $17 MILLION RECAPITALIZATION FOR $30M MEDICAL DEVICE MANUFACTURER
ACM Capital Partners announced it has successfully completed the recapitalization of a Medical Device Manufacturer with its main plant in Shenzhen, China and headquarters in the Southeastern U.S. The company is a privately owned, custom medical cable manufacturer actively engaged in the design, development and production of innovative medical interconnect technologies for the world’s leading medical device companies in the U.S. and Europe.
ACM was engaged by the equity sponsors of the Company in late 2012 to refinance the Company’s senior and subordinated debt. ACM assumed the roles of CEO and CFO to facilitate the process and to assist with the diversification of its customer base. The successful recapitalization of the balance sheet included a new Asset Based Loan (“ABL”) and Term Facility from Wells Fargo in the amount of $6.5 million. This facility, together with cash from the balance sheet, enabled the Company to buy the expensive seller debt at a 70% discount. To facilitate the transaction, ACM deployed $600,000 from its Fund to provide temporary bridge support.
“This recapitalization enables the Company to execute its growth strategy which will include targeted acquisitions and some organic growth,” said Jim Martin, the Company’s President and CEO and the Managing Partner of ACM Capital Partners. “We are thrilled that we were able to complete this recap and we thank Wells Fargo for their participation. Hopefully, this is the first step to the restoration of and ultimate growth in shareholder value.”
ACM CAPITAL FUND I COMPLETES THREE NEW FINANCING TRANSACTIONS IN APRIL
Continuing with its torrid pace, ACM Capital Fund I completed three new loan closings in April 2014 which included funding for its $20M nursery client in Homestead, Florida, its $15M food processor in Georgia and its $30M medical device client located in the Southeast. The total loan commitments of $1.75M provided our clients with the necessary bridge capital as we continue to assist each with the acquisition of more permanent capital. “This activity underscores the need in the lower middle market,” said Martin. “We believe the credit void in this area bodes well for our Fund II launch.”
