Hybrid Debt Financing for a Financial Services Company
Borrower Profile
A privately-owned financial services company that leverages proprietary software for the purpose of identifying, sourcing, evaluating, and purchasing cashflow assets, such as royalty and working interests, related to the energy sector.
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Sector: Financials
Loan Type: Senior Secured Revolver & Short Term Loan
Location: United States
Loan Amount: $28,000,000 USD
Date: October 2021 - Present
Challenge
The borrower's incumbent bank was unwilling to expand its existing credit facility, and Cortland provided an expanded, more flexible capital solution.
Solution
To support continued growth, Cortland has provided a hybrid loan facility consisting of a term loan portion of US$5 million and a revolver of US$23 million.
Result
The company has been able to continue its acquisition strategy to grow its business without ownership dilution.