OUR STORIES OF SUCCESS

Examples Of Successful Capital Raises

REFINANCE OF CO-BORROWER FACILITY BY MIDWEST PRIVATE EQUITY FIRM

A Chicago-based Private Equity firm hired Rush Street Capital to assist in helping to refinance their credit facilities for a portfolio company from a large regional bank. The Company was a co-borrower with another portfolio company and was seeking a stand-alone credit facility. The bank was unwilling to work with the company any longer and was putting significant pressure on the management team and the private equity firm to exit.  The Company required a full balance sheet restructure and a one-stop approach to obtain financing on both its working capital and fixed assets collateral, which was not available from its existing bank lender. Our network of lender relationships provided the Company with a number of specialty asset-based lenders who were able to provide several options in an abbreviated period of time. We were able to narrow the Company’s options and identify the lender with the greatest certainty to close.  Working under a tight time-frame, we assisted the company throughout the due diligence and closing process, which included several significant speed bumps and hurdles. We helped navigate these twists and turns to help close the new credit commitment in less than 60 days. The prior facility was refinanced without disrupting business operations and provided the company with increased availability and fresh capital to pursue numerous growth initiatives.


REFINANCE OF PORTFOLIO COMPANY BY MIDWEST PRIVATE EQUITY FIRM

A Chicago-based Private Equity firm hired Rush Street Capital to assist in procuring cross-border financing to refinance the working capital facilities for one of its portfolio companies. The existing lender was a large regional bank that had become uncooperative and unresponsive, despite the private equity firm continuing to support the company through fresh equity capital investments.  The portfolio company was a more recent investment for the private equity firm with numerous growth avenues. Our customer reached out to lenders but these groups had difficulty understanding and underwriting the Company’s seasonal business and Canadian Operations. We were brought in to provide a thorough read of the market and identify firms that were capable of handling these factors. We were able to procure interest from a number of specialty asset-based lenders while still providing the Company with favorable terms. The Company’s main objective was to ensure adequate availability for both of its North American Operations. Through our understanding of the Company’s needs and our work in the negotiation and documentation process of the transaction, we helped ensure both of its American and Canadian operations had sufficient availability and room to grow in the years ahead.


REFINANCE OF PORTFOLIO COMPANY BY MIDWEST PRIVATE EQUITY FIRM

A Chicago-based Private Equity firm hired Rush Street Capital to assist in refinancing their credit facilities with a large regional bank. The portfolio company was in the midst of a management transition and was still completing the integration of over 50 acquisitions that had taken place over 5+ years. EBITDA margins had been stagnant and the company had violated financial covenants. The bank lender became impatient and was pushing the company to the brink, blaming onerous regulations. The company was facing a huge debt cliff and substantial fees if it could not find a solution in a reasonable time frame. In addition, the company had used numerous seller notes to help finance its buy and build strategy, which were putting additional pressure on the balance sheet and the company’s ability to refinance and/or raise additional institutional capital. We were engaged to help advise on the situation and limit the dilution to the existing shareholders. We were successful in helping to restructure the seller notes, negotiate with the existing fatigued lender and avoid any dilution to the current equity holders. We raised nearly $30,000,000 in institutional capital from a combination of a new non-bank term loan lender and a new commercial bank, who provided a larger line of credit, with only a single financial covenant. The new capital allowed the company to refinance the existing bank in full, reduce its overall cost of capital, recapitalize the company’s balance sheet and fund several key growth initiatives. The entire engagement took 120 days to complete, from beginning to end.


Aviation Company Refinance and Consolidation

An Air Force Veteran and pilot owned, Mid-Atlantic based aircraft leasing, re-sale, and maintenance Company engaged Rush Street Capital to refinance and consolidate 8 of the Company’s owned aircrafts.   The 8 turbo-prop aircrafts had notes with 7 different lenders.  The goal of the refinance and consolidation was to improve administrative efficiencies and obtain a more efficient capital structure for the aircrafts’ financing.   Rush Street Capital introduced a local bank that refinanced the 8 notes and improved terms that resulted in savings of $167,052 per year.  


For Profit Career College Revolver and Mortgage Refinance

A private and family owned, Midwest-based For-Profit Career College was asked by its existing senior secured lender to refinance their loan facilities. After attempts to find financing on its own, the College engaged Rush Street Capital to run a full refinance process. Rush Street Capital successfully procured the refinancing of a $3.5 million working capital line of credit and a $4.0 million first mortgage for the College. The College’s new line of credit provider is a group that Rush Street Capital introduced to the Company and has bankers with higher education expertise. Additionally, Rush Street Capital was able to obtain attractive terms for the College on the mortgage refinance with fixed-rate and 25-year tenor and amortization terms. The savings as a result of the improved mortgage terms is in excess of over $167,000 per year.


 

A Sampling of Capital Providers:


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