“WE ARE PLEASED WITH OUR NEW CAPITAL STRUCTURE. IN ADDITION TO SUBSTANTIALLY REDUCING INTEREST EXPENSE, IT WILL ALSO PROVIDE US FINANCIAL FLEXIBILITY FOR THE FUTURE AND ALLOWS US TO REINVEST BACK INTO THE COMPANY.”
Brad Hoffman, President and Chief Financial Officer, Arandell
Arandell Corporation is one of the nation’s leading producers of high-quality catalogs and brochures with a strategic focus on upscale retailers and direct mail merchandisers located throughout the United States. Arandell has been experiencing an increase in demand as their respective markets strengthened and conditions became favorable for customer expansion.
During 2013, Arandell engaged Promontory Point Capital to serve as their consultant and debt capital advisor. Together, Arandell and Promontory identified a long-term capital structure that would generate liquidity and position the Company for continued growth. Arandell’s objective was to refinance its balance sheet by pairing specialized debt providers with a new banking relationship.
THE CAPX APPROACH AND SOLUTION
Arandell’s bank financing was led by The PrivateBank with CapX Partners providing an equipment term loan and Spell Capital and Farragut Capital Partners providing mezzanine debt. Together, the debt providers worked in unison to accommodate Arandell’s financing needs. Because of the Company’s long-standing and diverse customer base as well as the “mission criticalness” of the equipment assets, CapX was able to provide an accommodating structure. CapX will also look to support Arandell’s future capex needs.
“CapX has enjoyed getting to know Brad and the rest of the Arandell management team. From day one, they were able to effectively communicate their vision for the future. CapX also enjoyed the opportunity to work with The PrivateBank as well as Spell and Farragut on formulating a financing solution that was ideal for the Company’s future. CapX looks forward to a long-term financing relationship with both Arandell and the debt providers.” -Bryan Rozum, Vice President, CapX Partners