Abacus Finance Group served as Administrative Agent and Sole Lead Arranger for $25 million in senior secured credit facilities to support the acquisition of Hubbardton Forge by Bunker Hill Capital.
Abacus was joined in the senior financing by Crescent Capital. Mezzanine financing for the transaction was provided by The Hartford and The Brookside Group.
Hubbardton Forge is a designer and manufacturer of hand-forged residential and commercial lighting products. The company is based in Castleton, VT (www.hubbardtonforge.com).
“Abacus Finance was able to meet the unusually tight deadlines that were essential to closing this transaction,” said Rufus Clark, Managing Partner and Co-Founder of Bunker Hill. “We have known the Abacus team members for years, and they lived up to their reputation for delivering on what they promise. Their due diligence was extensive and quickly completed, and the transaction terms they proposed were in line with what we were seeking with respect to both amortization and the cost of capital.”
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).
Abacus team members involved in the transaction included Sean McKeever, Eric Petersen, and Tim Wong.
Bunker Hill makes control investments in lower middle market companies with revenues up to $300 million, EBITDAs between $5 million and $35 million and enterprise values typically between $30 million and $150 million. Sectors of interest include industrial products, business services, specialty retail, and consumer products. The firm has offices in Boston and San Diego (www.bunkerhillcapital.com).
“This was a great match for us for a number of reasons,” said Tim Clifford, President and CEO of Abacus. “Like us, Bunker Hill’s focus is on lower-middle market companies. We know the firm’s senior partners well and have a great deal of respect for their knowledge of and experience in consumer products and the other sectors in which they invest. As in other transactions, success was a function of our speed, flexibility and ability to provide certainty of close – all important aspects of what we call our Total Partnership Approach.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-12-13