Fluctuating economic conditions, coupled with managing multiple remote teams to secure financing for a major acquisition isn’t a scenario every finance provider is equipped to handle.
Kinzie Capital Partners, a Chicago-based private equity group approached Gibraltar to find a financing source for the acquisition of Chelsea Lighting, a well-known New York City-based lighting technologies and procurement specialist that has worked with prominent Fortune-500 companies.
Gibraltar prides itself on offering greater liquidity and flexibility than traditional commercial bank loans. This was the experience GBC’s leadership provided to the private equity group acquiring Chelsea Lighting NYC. After benefitting from the team’s borrowing base creativity and a willingness to offer a non-traditional ABL, Kinzie Capital Partners was able to secure financing through GBC’s $15,000,000 credit facility for the acquisition.
Gibraltar’s Ingenuity Maximizes Borrowing Availability
Kinzie Capital Partners chose Gibraltar because the team took the time to understand the acquisition target’s economic forecast and opportunities as well as its unique business model. In addition, GBC’s leadership team worked closely with the Kinzie Capital Partners team during the process to understand the acquisition strategy and provide a supportive financing structure, all through the uncertainties resulting from the COVID-19 pandemic.
Suzanne Yoon, Founding and Managing Partner at Kinzie Capital Partners, shared, “The level of engagement from Gibraltar’s senior leadership was pivotal in getting this deal done. The entire Gibraltar team was responsive, thoughtful, and creative in addressing obstacles, which helped us to hit the target close date. We are grateful for Gibraltar’s partnership on this transaction.”
Gibraltar’s team offered creativity and flexibility throughout the diligence process to create maximum borrowing availability for the private equity group. Despite working under tight constraints and entirely remote teams, Gibraltar was able to find an optimal solution, even as unexpected challenges occurred during the process.
Gibraltar Works Across Multiple Teams to Provide Greater Liquidity
Gibraltar’s leadership dug into the logistics of the financing needs early in the process to understand the business and the value of its borrowing base. GBC’s team worked with multiple parties, including a sub-debt provider, to work through some non-traditional collateral implications to the borrowing base.
The result was GBC’s team being able to seamlessly provide financing that supported all parties involved and a $15,000,000 credit facility to offer liquidity to effectuate Kinzie Capital’s acquisition of Chelsea Lighting.