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Super G Provides $2.0MM Bridge Loan to Finance Bank Exit

January 25, 2018, 07:03 AM
Filed Under: Pharmaceuticals

Super G announced the company provided a $2.0 million senior secured, interest-only bridge loan for a private equity backed, outsourced pharmaceutical service provider conducting clinical research. The senior secured, interest-only bridge loan was utilized for a full take-out of the bank and working capital to support the company’s immediate financing needs – a flexible structure which will allow the company to operate its business with sufficient liquidity and buy time to run a full process for a new bank relationship.

Super G was able to get comfortable with the sales lumpiness & YTD financial performance given the Company’s strong track record, accounts receivable collateral, enterprise value, and experienced management team. Super G was able to close quickly (within 2 weeks) which benefited both the bank (removed loan from special assets) and the Company (covenant light loan, working capital cushion, and debt service flexibility).

The company had a cash flow based term loan with its bank and was in technical default. Given the combination of lender fatigue, lumpy sales & cash collections due to the timing of contracts, and high monthly payments on the term loan, the company was seeking immediate relief. An asset based lender was not a solution due to timing and the term loan take-out amount would not conform to a borrowing base.



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