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Tide Rock Secures $100MM Line of Credit for Working Capital and Expansion

May 10, 2023, 07:08 AM
Filed Under: Investment Financing

Tide Rock, a growth-oriented holding company of diverse, economically resilient B2B businesses, announced that its investment vehicle, Tide Rock YieldCo, LLC, has secured a $100 million syndicated revolving loan facility from California Bank & Trust (CB&T), a division of Zions Bancorporation, CIBC Bank USA, and Manufacturers Bank. The facility also includes an uncommitted accordion feature of $50 million, for a total borrowing capacity of up to $150 million. Zions Capital Markets acted as the Sole Bookrunner and Administrative Agent with CIBC Bank USA as Documentation Agent for this debt facility that will enable Tide Rock to continue its rapid expansion plans through unlevered strategic acquisitions.

“While Tide Rock continues to avoid any long-term or amortized debt, we are rapidly growing into a $1B company and there is more complexity in the ongoing needs of our portfolio companies.” said Brooks Kincaid, President of Tide Rock, “This line of credit enhances our capacity to finance our companies’ working capital needs, support our capital equipment needs, and manage capital call timing for our institutional investors flexibly and tax efficiently.”

“We’re proud to continue our support of Tide Rock, a partnership that began in 2020 with a $7.5 million line of credit," said Peter Drees, senior vice president of specialty finance at California Bank & Trust. “This new debt facility will provide working capital to assist Tide Rock in onboarding and managing a growing platform of unique businesses.”

Tide Rock continues to secure equity capital commitments from institutional investors, investment advisors, and $1B+ family offices to use in acquiring profitable lower middle market businesses with no transactional leverage. This includes recently acquired companies, Triad Service Solutions, Fabcon, Adura, and FR Conversions. Tide Rock oversubscribed its most recent round that closed in April 2023 and currently added $100+ million of new committed capital. The company will continue raising additional equity capital and growing its holdings over the next several years. With new capital and a robust investor pipeline, Tide Rock is actively looking for manufacturing, distribution, and business services companies to add to its portfolio.

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