Tree Line Capital Partners has provided a first lien credit facility to back the buy of unWired Broadband by O2 Investment Partners. O2 partnered with the company’s senior management team on this transaction.
Using a small radio and antenna placed near the customer’s building or home, UnWired provides fixed wireless internet services to more than 22,000 customers in rural and underserved areas of California’s Central Valley. Through its network of 167 towers, the company broadcasts an internet signal to its service territory that spans more than 14,000 square miles. UnWired, led by President Peter Sorensen with more than 130 employees, was founded in 2003 and is headquartered in Fresno, California.
“We have enjoyed building a longstanding relationship with the Tree Line team and value their ability to close efficiently,” said Jimmy Frye, a senior associate at O2. “As we look to pursue a buy-and-build strategy, we chose to work with Tree Line given their demonstrated commitment to provide additional capital to support the growth needs of our portfolio companies.”
Tree Line is an active provider of first-lien term loans, unitranche term loans, and equity co-investments to North America-based lower middle market companies that have EBITDA from $3 million to $30 million and transaction sizes up to $150 million. The Tree Line team has experience across multiple economic cycles – the firm has completed more than 150 transactions for acquisitions, recapitalizations, refinancings, and expansion projects – and has generated significant repeat investment opportunities from private equity sponsors.
“This transaction is a great example of our relationship-driven approach to direct lending,” said Stephan Schneck, a principal of Tree Line. “unWired represents the fourth O2 platform we have financed and ninth total transaction, including add-on acquisitions. As a result, we were able to leverage existing documentation and streamline the closing process. We recognize the value generated from buy and build strategies and are well equipped to execute these deals over a long relationship given our significant follow-on capital capacity.”
O2 makes control investments in companies with enterprise values from $10 million to $100 million and EBITDA from $4 million to $15 million that are located anywhere in the US and Canada. Sectors of interest include business-to-business services, technology, and select niche industrial companies. In January 2021, O2 held a final closing of O2 Investment Partners Fund III LP with $270 million in capital commitments. O2 is based in the Detroit suburb of Bloomfield Hills and was founded in 2010.
Tree Line currently manages $1.7 billion in capital and is headquartered in San Francisco with additional offices in New York City, Los Angeles, and Austin.
© 2021 Private Equity Professional | August 26, 2021