Construction Partners, an infrastructure and road construction company and portfolio company of SunTx Capital Partners, has refinanced substantially all of the company’s existing debt and consolidated its borrowings into a simplified credit structure. Proceeds from the consolidation will be used to fund a cash distribution to SunTx investors and to, of course, support the company’s continued growth.
ServisFirst Bank (www.servisfirstbank.com) and BBVA Compass (www.bbvacompass.com), both based in Birmingham, AL, provided revolving credit facilities, while a CIT (www.cit.com) led syndicate structured an asset-based term loan and capex facility. The financing also included a second-lien term loan from The Capitala Group (www.capitalagroup.com).
“We are pleased to have successfully refinanced and consolidated our credit facilities on favorable terms. With a strong balance sheet and a streamlined credit structure, management is well positioned to continue growing the company through organic initiatives and strategic acquisitions,” said Charles Owens, President and CEO of Construction Partners.
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).
“With an experienced management team and a dedicated work force operating in our nation’s fastest growing region, CPI continues to gain market share and strategically expands its operations,” 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).
2014 PEPD • Private Equity’s Leading News Magazine • 12-18-14