Abacus Finance Group was the Administrative Agent and Lead Arranger for a senior secured credit facility to support the recapitalization of PerTronix by Lineage Capital.
PerTronix is a manufacturer of electronic ignition systems and exhaust products sold under a family of brand names including Flame-Thrower, Ignitor, Second Strike, Doug’s Headers, Spyke, Compu-Fire, Patriot Exhaust, Smithy Mufflers, and others. The automotive aftermarket accounts for approximately 90% of sales with the balance spread among motorcycle, marine, industrial and agricultural customers. The company was founded in 1969 and is headquartered east of Los Angeles in San Dimas, CA (www.pertronix.com).
Lineage Capital specializes in the recapitalization of family-controlled and owner-managed lower-middle market companies that have revenues between $20 million and $250 million and EBITDA of at least $4 million. Sectors of interest include consumer, industrial, service, and distribution businesses. The firm was founded in 2003 and is based in Boston (www.lineagecap.com).
“This was our first transaction with Abacus, and we were more than pleased with the experience, something that came as no surprise because we have worked with the senior members of the Abacus team over many years,” said T. Brook Parker, a Partner with Lineage. “They provided us with the speed and flexibility needed to close the transaction, both of which were critical in this deal. We look forward to working with them on future transactions.”
“It was great to work again with the Lineage principals, some of whom we have known for 15 plus years,” said Tim Clifford, President and CEO of Abacus. “We were excited to be able to support a very highly attractive niche company with an impressive portfolio of brands in the auto enthusiast market. This transaction is a great example of how Lineage’s investment strategy matches up well with our flexibility and our focus on lower-middle market companies – key ingredients of what we call our Total Partnership Approach.”
Other Abacus team members involved in the transaction included Director Aized Rabbani and Associate Rafal Rydzewski.
Abacus provides cash flow senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million. Abacus is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850. Abacus is based in New York (www.abacusfinance.com).
Legal counsel was provided to Abacus by Goulston & Storrs (www.goulstonstorrs.com).
© 2016 Private Equity Professional • 9-23-16
