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Fifth Third Business Capital Provides New $70MM Senior Credit Facility for Lignetics

March 27, 2020, 08:50 AM
Filed Under: Manufacturing

Fifth Third Business Capital, a division of Fifth Third Bank, National Association, announced it acted as lead lender and administrative agent on the closing of a new $70,000,000 Senior Credit Facility for Lignetics, Inc. and its various subsidiaries.

Based in Louisville, Colorado, Lignetics is a market leader in turning wood waste into a range of premium eco-friendly 100% natural products across several consumer categories. Lignetics is the largest residential wood pellet manufacturing company in the U.S. with a production capacity of approximately 1.2 million tons of wood pellets per year. With 14 operating locations in the US and one in Canada, Lignetics provides wood pellets and ancillary products utilized in several applications including home heating, animal bedding, BBQ pellets, cat litter, and various other industrial uses. Fifth Third’s credit facility was used to facilitate the acquisition of Energex Corporation and will assist the company going forward with capital expansion, growth and working capital funding.

Lignetics is a portfolio company of New York-based Taglich Private Equity, LLC, a value-oriented financial sponsor that is focused on investing in the lower middle-market. They specialize in recapitalizations, management buyouts and majority equity investments, targeting manufacturing, business services and consumer products companies. Since inception in 2001, they have invested more than $650 million, funded primarily with capital provided by Taglich Brothers, Inc., a brokerage firm and registered investment advisor managing capital in both public and private investments. Taglich focuses on finding sound investment opportunities with capable management and delivering significant growth resources and capital to portfolio investments.

“We feel that we have found a great partner in Fifth Third who truly understands our business,” said Will Morris, managing director at Taglich Private Equity. “We are very excited about the Energex transaction that will enable Lignetics to continue to grow our various eco-friendly product offerings and continue to explore future M&A opportunities.”

“We appreciate our relationship with Taglich and the opportunity to be part of the financing for Lignetics, a leading company in its niche with a very impressive track record of growth in sales and earnings,” said Michael Sharkey, president of Fifth Third Business Capital.

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