Enhanced Capital Partners has invested $10.5 million in subordinated secured debt in Climax Manufacturing Company and Carthage Specialty Paperboard (collectively “Climax”). The investment was made through the firm’s SBIC fund, Enhanced Small Business Investment Company, LP.
Climax is a manufacturer of specialty paperboard, folding cartons, and custom packages. Climax will use the proceeds of the transaction to refinance existing debt and to fund a capacity expansion project at its paper mill. The company has operations in Lowville and Carthage, NY (www.climaxpkg.com).
“Enhanced Capital demonstrated its flexibility and speed throughout the entire process,” said Ted Cordes, CFO of Climax. “We are looking forward to working with the Enhanced Capital team over the coming years.”
The Enhanced Small Business Investment Company, LP is a SBIC fund set up by Enhanced Capital Partners for the purpose of providing debt and minority equity financing to US-based lower middle market companies. The firm invests from $3 million to $20 million per transaction in companies with revenues of at least $10 million and EBITDAs of at least $2 million. Enhanced Capital Partners is based in New York (www.enhancedcapital.com).
“We are excited to support the growth of Climax as it continues to build upon its best-in-class product offering,” said Barry Osherow, Managing Director at Enhanced Capital. “This transaction will position Climax to expand its production capacity.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-14-13
