Growth Capital Case Study
The BusinessSpectrio is one of the nation's leading all-inclusive audio/visual (A/V) marketing companies, providing on-hold messaging, over-head music, digital signage and other A/V solutions to national and multinational companies.
Main Street was introduced to Spectrio through a lower middle market lending relationship which Main Street has partnered with on multiple transactions. Absent the availability of traditional bank financing, Spectrio sought acquisition/growth capital and a means to retire its existing debt, which was held by a liquidating hedge fund.
Main Street, along with a co-investor, provided 100% of the capital requirement in the form of a senior secured term loan with attached warrants. To support future growth and acquisitions, Main Street provided a revolving line of credit and a conditional term loan commitment for additional funding. Since the initial transaction, Main Street has provided financing for seven follow-on acquisitions, sometimes in as few as 30 days. Main Street maintains a minority equity position in Spectrio.
Before Main Street Partnership
- Limited growth prospects due to capital constraints
- Management team stretched thin
- Difficult to attract talent
- Debt held by liquidating hedge fund
After Main Street Partnership
- Growth prospects coupled with significant capital availability for future acquisitions
- Financial and strategic support and acquisition due diligence assistance
- Increased size and scale via acquisitions attracts top sales management
- Debt held by minority equity investors with an appetite to support the company’s growth through additional funding
- Strong management team
- History of successful acquisition integration and growth
- Diversified customer base
- Growth capital
- Seven follow-on acquisitions
- Senior secured debt with warrants
- 9.8% equity ownership through warrants