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Gordon Brothers Finance Company Completes $31.2 Million Term Loan Financing to SkyWater Technology Foundry
Gordon Brothers Finance Company announced today that it has entered into a $31.2 million term loan financing transaction with SkyWater Technology Foundry, Inc. for the purchase of Cypress Semiconductor Corp.’s Bloomington, MN, semiconductor wafer fabrication facility, Cypress Semiconductor (Minnesota) Inc.
Backed by Minnesota-based holding company Oxbow Industries, LLC, SkyWater has purchased the capital stock of the subsidiary and will operate the fab as a standalone business that will manufacture wafers for Cypress and for other semiconductor manufacturers. The operation will now operate under the name SkyWater.
“We are pleased to provide SkyWater and Oxbow with the financing to support the acquisition of the Bloomington-based business,” said Lawrence Klaff, senior managing director with Gordon Brothers Finance Company. “Thanks to our partnership with Bob Maroney of Gordon Brothers’ Commercial & Industrial division, we had a clearer understanding of the business’s underlying asset value. We look forward to supporting the ongoing operations of the company.”
Bart Zibrowski, CFO of SkyWater, added, “We were impressed with Gordon Brothers Finance Company’s efficiency and grasp of the business opportunity, as well as their ability to provide a financing solution on an efficient timeline. We look forward to our continued partnership.”
SkyWater will continue to operate out of its Bloomington, MN, fabrication facility.
Based in Boston, MA, Gordon Brothers Finance Company (www.gbfinco.com) is a private, best-in-class, asset-based provider of loans to middle market companies globally. Through our exclusive, strategic partnership with Gordon Brothers, and with ready resources, we turn asset knowledge into capital. Solely focused on lending, our dedicated team is nimble, creative, and responsive in structuring credit agreements. We serve as a complement to standard, first-tier financing, extending credit beyond traditional sources for our clients.
Since 1903, Gordon Brothers (www.gordonbrothers.com) has helped lenders, operating executives, advisors, and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customized solutions on an integrated or standalone basis across four service areas: valuations, dispositions, operations, and investments. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers partners with companies in the retail, commercial, and industrial sectors to put assets to their highest and best use. Gordon Brothers conducts more than $70 billion worth of dispositions and appraisals annually. Gordon Brothers is headquartered in Boston, with 25 offices across five continents.
SkyWater is a world-class 200mm semiconductor wafer manufacturing facility located in Bloomington, Minn. SkyWater is the only U.S. owned and independently operated semiconductor factory accredited by the Defense Microelectronics Activity as a Category 1A Trusted Fab, enabling it to process Classified and Trusted Unclassified designs for the U.S. Department of Defense. SkyWater is also automotive qualified, competitive with Asian foundries of similar size and technology mix, and is capable of high-volume manufacturing. CMI has capacity for 11,000 wafers starts per month, with on-site wafer sort and failure analysis capability. SkyWater primarily manufactures 200 millimeter semiconductor wafers and supports a specialty foundry.
TSL EXPRESS INDUSTRY HEADLINES
Wells Fargo Promotes Friesth to Central Division Manager for Middle Market Banking
Wells Fargo (NYSE:WFC) announced that veteran commercial banker Grant Friesth will head the Central Division for Middle Market Banking, effective immediately. Friesth, who previously led Middle Market Banking in Iowa, now also manages Nebraska, North Dakota, and South Dakota operations. READ MORE
Asset-based Finance Reaches Record High in UK
Asset-based lending hit a record UK high of £22.2 billion in 2016 as businesses look to alternative methods of funding for acquisitions, according to the Asset Based Finance Association (ABFA). ABFA claims the 13 percent jump on 2015 lending is a result of UK businesses turning to asset-based finance, instead of more traditional sources such as bank overdrafts and loans, to finance growth and M&A activity. READ MORE
Kongsberg Gruppen Signs NOK 2.30 Billion Revolving Credit Facility
New facility has a tenor of five years with two one-year extension options and replaces existing revolving credit facility of 1.50 billion crowns Kongsberg has had since 2014. READ MORE
iHeartCommunications, Inc. Announces Private Term Loan Offers in Connection with a Proposed Global Restructuring of Its Indebtedness
iHeartCommunications, Inc. commenced private offers the (Term Loan Offers) to lenders under the Company’s Term Loan D and Term Loan E facilities (Existing Term Loans) to amend the Existing Term Loans and/or exchange them for new term loans of iHeartCommunications (the New Term Loans), and new securities of iHeartCommunications, iHeartMedia, Inc., CC Outdoor Holdings, Inc., and/or Broader Media, LLC. READ MORE
Perpetual Energy Inc. Confirms Closing of Debt Financing, Private Placement and Credit Facility Amendments and Announces Early Redemption for 2018 Senior Notes
The $45 million second lien senior secured term loan with Alberta Investment Management Corporation (AIMCo) included the issuance of 5.40 million warrants to purchase Common Shares at any time prior to March 13, 2020 at an exercise price of $2.34 per Common Share. READ MORE
Gehl Foods Obtains $15 Million in Equipment Financing From CapX Partners
CapX Partners (CapX) announced the closing of a $15 million lease line of credit to Gehl Foods, a leading contract manufacturer/packager.
Gehl Foods (Gehl), (www.gehls.com) headquartered in Germantown, Wisconsin, creates shelf-stable, dairy-based cheese sauces, puddings, yogurt and nutritional beverages, and is now the nation’s leading aseptic manufacturer.
Gehl products are sold through both foodservice and retail channels. Their partners include 200,000 of the largest retailers, foodservice operators, and distributors throughout the United States, Canada, and Mexico. The company produces top-quality products out of four state-of-the-art facilities with over 800,000 square feet of manufacturing and storage space.
CapX recognized Gehl’s long-standing reputation for quality, safety, and performance in the dairy product manufacturing industry. With robust growth opportunities on the horizon and the need for increased production capacity, CapX provided the Company with a customized lease line of credit. This equipment lease facility will fund new automated cartoning and bottling production lines and will fulfill the Company’s need for increased manufacturing capacity.
Tim Preuninger, chief financial officer at Gehl Foods: “We have found CapX very easy to work with. They are extremely responsive, they do what they say they will do, and they offered a strong financing program that was flexible to meet our needs. I would enthusiastically recommend them to anyone that is looking for a competitively priced financing option that also requires a partner that can be flexible to address changing requirements.”
Bryan Rozum, director at CapX Partners: “CapX is pleased to work with Wind Point Partners on our third growth capital financing together. After gathering details on Gehl’s 2017 capex budget, CapX realized the value it could add by providing a flexible and customized financing solution. CapX looks forward to supporting Gehl’s growth needs and is a proud financing partner to Gehl’s soon to be upgraded manufacturing and distribution process.”
Founded in 1999, CapX Partners (CapX) is a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2-$20 million range. CapX provides senior and mezzanine debt including lease lines and favors manufacturing, distribution, technology, energy and healthcare industries with an emphasis on revenue-producing fixed assets. www.capxpartners.com.
Scargo Hill Capital Co-Founder Helps Foster Community and Social Responsibility through Education and Mentoring Programs
Scargo Hill Capital, LLC, an institutional asset manager focused on providing asset-based, senior secured direct lending to the retail and consumer product sectors, today shared the recent formation of SLC Pay It Forward, Corp., a non-profit founded in memory of Stewart L. Cohen (1954-2016). Led by Andy Moser, Jacen Dinoff and the Cohen family, SLC Pay It Forward’s mission is focused on three core concepts: goodwill, mentorship, and education.
“Nobody has influenced my life more in the last 25 years than Stewart Cohen,” said Mr. Moser, managing partner and chief executive officer, Scargo Hill Capital. “He was a friend and a mentor, someone who taught me so much throughout my career. It is my obligation and honor to ‘Pay It Forward,’ which is why I led the formation of the non-profit in his honor.”
SLC Pay It Forward engages in activities such as raising and providing funds to increase endowments in fields of study and for venues (e.g. education facilities) for the purpose of promoting the activities in and around corporate renewal. The organization will actively seek to further the education of corporate recovery industry professionals and provide a vehicle for connecting successful executives with qualified students to provide mentorship, internships and potential employment.
Working with Northeastern University, Stewart’s alma mater, SLC Pay It Forward will also aim to arrange co-op opportunitiesfor those interested in pursuing a career in finance, specifically restructuring and corporate renewal.
As part of Scargo Hill’s efforts to support corporate restructuring and retail industry education programs, Moser often participates in events hosted by the University of Georgia’s Entrepreneurship Program, housed in the Terry College of Business, and the University of Florida’s David F. Miller Retail Center at the Warrington College of Business.
In 2016, Moser was asked to join and appointed to the Advisory Board of “Let’s All Do Good,” a mobile platform that enables organizations to reach their supporters and empowers them to be more actively engaged in their cause in the community. “My passionate belief is that all people want to do something good and this could not align more perfectly with the founding beliefs behind such a great initiative poised to help bring people together,” Moser added.
Scargo Hill Capital is an institutional asset management platform focused on providing senior secured direct lending to lower middle-market companies across retail, consumer products and the broader supply chain. Scargo Hill offers working capital solutions that provide maximum liquidity and flexibility with the goal to help its borrowers and investors achieve their goals. The firm ideally targets transaction sizes under $25 million but will consider larger, value-add transactions. www.scargohillcapital.com
Phoenix Capital Group is Promoting Freight Bill Factoring and Giving Away Yetis at the Mid-America Trucking Show 2017 at booth #69089
Representatives from Phoenix Capital Group headquarters in Scottsdale, Arizona as well as the Birmingham, Alabama office will be attending the Mid-America Trucking Show March 23rd through the 25th, 2017. Located in the West Wing, booth #69089, Phoenix Capital Group representatives will be awaiting the arrival of over 70,000 independent truck drivers. Information regarding freight bill factoring, equipment financing, fuel card programs, and more will be available to all truck drivers.
Phoenix Capital Group representatives will be giving away a Yeti Hopper to one lucky truck driver; stop by booth #69089 to enter to win! Independent truck driver can also let Phoenix Capital Group representatives know they will be stopping by the booth for a special gift by clicking here. Each year Phoenix Capital Group attends a trucking trade show; representatives give away fun, special gifts to all loyal clients, social media followers, and new friends.
Phoenix Capital Group is eagerly waiting to fly out to Louisville, Kentucky to meet each independent truck driver attending the Mid-America Trucking Show 2017. Be sure to sign up for a special gift that you can pick up March 23d through March 25th at booth #69089 in the West Wing.
Phoenix Capital Group is an industry leading provider of transportation financing services for trucking companies in the United States. Headquartered in Scottsdale, Arizona, Phoenix Capital Group also maintains regional offices in Texas, Alabama, and Tennessee. Phoenix Capital Group offers a powerful array of transportation services including recourse freight factoring and non-recourse freight bill factoring, equipment financing, fuel card programs and a free online load board service. www.pcgfactoring.com