Middle Market Acquisition Financing

The Scenario: An independent waste management owner/operator had recently concluded a recapitalization of his business designed to position it to grow via acquisition with an eye to an eventual sale. His lenders in the recap, a major bank, had imposed covenants that limited distributions to him until the business achieved certain free cash flow thresholds. Although reasonable, these covenants served as a potential constraint on his ability personally to fund several related technology and resource investments.

The Deal: NYPF structured a personal loan against his illiquid equity which provided the medium term flexibility he needed.

The Results: The loan to the owner/operator allowed the company to pursue its acquisition strategy, while the entrepreneur captured the upside of technological innovation – all of which served to improve investment diversification and to increase the pace his of wealth creation.