CIT Leads Dividend Recap for SunTx

CIT was the lead agent on a $76 million senior secured credit facility to Construction Partners, a portfolio company of SunTx Capital Partners. Proceeds of the facility were used to refinance equipment and real estate-related debt, fund a cash distribution to SunTx investors, and to provide capital for the future growth of the company.

Construction Partners acquires road construction companies with expertise in asphalt production, paving and other construction services for both the public and private sectors.  The company was founded in 2001 and operates as the corporate management group of the companies it acquires including Wiregrass Construction (Alabama), C.W. Roberts Contracting (Florida), Everett Dykes Grassing (Georgia) and Fred Smith Company (North Carolina). CPI is headquartered in Dothan, AL (www.constructionpartners.net).

“In 2001, we partnered with an experienced management team to establish Construction Partners, which embarked on a consolidation strategy in the road construction industry. The company has grown through a number of strategic acquisitions and greenfield expansions since then. In CIT, we have found an outstanding financial partner to support Construction Partners as it executes its expansion strategy,” said Ned Fleming, Managing Partner of SunTx Capital Partners.

SunTx Capital Partners invests in middle-market manufacturing, distribution and service companies. The firm was founded in 2001 and currently has over $600 million of assets under management. SunTx is headquartered in Dallas (www.suntx.com).

“We are pleased to provide this financing for Construction Partners,” said Burt Feinberg, President of CIT Corporate Finance, Commercial and Industrial. “As a regionally-focused leader in the road construction and hot-mix asphalt industry, Construction Partners has a strong management team with a well-established record of success and an engaged private equity partner in SunTx. We look forward to growing these relationships.”

CIT Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $35 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).

“We are pleased to partner with SunTx and their portfolio company Construction Partners to support future growth of their business,” said Jeff Kilrea, Co-Head and Managing Director of CIT Sponsor Finance.

Other lenders in this transaction included ServisFirst Bank (www.servisfirstbank.com) and BBVA Compass (www.bbvacompass.com). Both are based in Birmingham, AL and provided revolving credit facilities. A second-lien term loan was provided by The Capitala Group (www.capitalagroup.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-20-15