Abacus Finance Group was the Administrative Agent and Sole Lead Arranger for $19 million in senior secured credit facilities to support the acquisition of Atronix, a provider of cable assemblies, by Wafra Partners. Abacus team members involved in the transaction included Timothy Wong and Eric Petersen.
Atronix is a provider of cable assemblies, wire harnesses and electromagnetic assemblies to a diverse group of end markets. Products include internal and external inter-connect cabling; wire harnesses; power cords and cable assemblies; jumper wires and interconnects; coaxial cable assemblies; triaxial cable assemblies; and custom wire pigtails and extensions. Atronix has facilities in Billerica, MA; Tucson, AZ; and Nogales, Sonora, Mexico; and partner production facilities in China. The company was founded in 1980 and is based northwest of Boston in Billerica, MA (www.atronix.com).
“Our previous experience investing in the wire, cable and harness space aligned well with Wafra’s needs in the Atronix transaction,” said Tim Clifford, President and CEO of Abacus Finance. “A smooth due diligence process, certainty of close, and flexibility in structuring – key principles of the Abacus Finance Total Partnership Approach – are all the reasons why private equity sponsors choose Abacus as a trusted lending partner.”
Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million. The companies that Abacus finances generally have EBITDAs between $3 million and $15 million. Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. Abacus is based in New York (www.abacusfinance.com).
“We are thrilled with the success of the first transaction between Wafra and Abacus Finance,” said Wafra Managing Director Ryan Wierck, “and were impressed with Abacus’ expertise, enthusiasm and ability to complete the transaction quickly.”
Wafra invests up to $30 million of equity per transaction in middle market companies based in North America that have enterprise values between $20 million and $150 million. Typical investments have revenue of $20 million or more and EBITDA of $4 million or more. Sectors of interest include consumer products, outsourced business services, niche manufacturing, and consumer-driven services. The firm is based in New York (www.wafrapartners.com).
Northstar Mezzanine (www.northstarcapital.com) provided the mezzanine financing for this transaction.
2014 PEPD • Private Equity’s Leading News Magazine • 7-23-14