The Linc Group, LLC
The Linc Group, LLC ("Linc" or the "Company") provides technical facilities services including on-site facilities operations and management services, mobile HVAC preventative maintenance service programs and related retrofit and refurbishment projects to customers throughout the United States. Linc also licenses its business methodology platform through its franchise operations to more than 100 independently owned companies. The Company underwent a management-led buyout with support from a private equity sponsor in 2003.
Linc's growth strategy included a plan for acquiring businesses that provided geographic expansion or product line enhancement opportunities. The Company and its private equity partners indentified three potential targets, the purchase of which required debt financing that exceeded the capacity of its existing lender. Efforts to raise the required financing through existing lender relationships were unsuccessful and Linc was facing the expiration in 30 days of letters of intent to acquire the targets. Management believed that a lack of progress in attracting the required financing would result in the loss of one or more of the acquisitions.
GulfStar Group Strategy
Linc retained GulfStar to arrange the private placement of $60 million of senior and senior subordinated indebtedness with a target closing 30 days from the date of GulfStar's hiring. GulfStar indentified a universe of traditional senior lenders, second lien lenders and mezzanine providers capable of meeting the Company's needs and was in the market with a financing memorandum within a week.
GulfStar generated multiple proposals from a combination of one-stop lenders and partnered senior and second lien providers. Linc ultimately reached agreement with a traditional bank lender that was willing to underwrite the full financing and closed on the facilities, a $15 million revolving line of credit, $25 million senior term loan and $20 million senior subordinated term loan, with the desired 30 days.