Private Equity Group


A Midwest private equity firm engaged Monroe Credit Advisors to structure and arrange new financing in order to recapitalize one of its portfolio companies. This longtime defense contractor was experiencing rapid growth as a result of the award and execution of several government contracts which increased the working capital needs of the company. Additionally, the company was seeking to replace existing subordinated debt with a new and increased amount of subordinated debt to further support growth.


In the wake of tight credit markets, particularly for cash flow structured leveraged loans, Monroe Credit Advisors pursued multiple options with senior ABL and cash flow lenders, as well as subordinated lenders that had experience in government contracts. Monroe framed the company's story in a confidential information memorandum that detailed the company's existing government contracts and corresponding forecasted cash flows based on confirmed order releases and backlog. Lender meetings were held with management at the company's facility to review its operations and business plan. Shortly thereafter, Monroe solicited term sheets from interested parties and negotiated terms on behalf of the company and its owners. Given the complexity and tight timing requirements of the transaction, Monroe continued to lead the refinancing effort through documentation and a successful closing.

Category 3