Structured Loans Overview
GB Merchant Partners, the investment management affiliate of Gordon Brothers Group, provides creative debt financing solutions to private and public middle-market companies in a variety of industry sub-sectors and product categories. The typical loan size ranges from $10 million to $50 million.
Debt financings are typically structured as junior secured loans, "Tranche B" loans or enterprise value loans. Our dual focus on both asset and enterprise values enables us to bring a unique perspective to a variety of financing situations and extend beyond the levels that traditional lenders can support.
Structured Loans from $10 to $50 million.
We provide borrowers with structured loans that are typically used for working capital, to fund long-term growth, or to execute an acquisition or facilitate a turnaround. General acquisition facilities also can be arranged by the seller of a business for the benefit of potential purchasers in order to mitigate financing risk in a divestiture.
Our investment philosophy is based on the following principles:
- Junior Secured Loans. By frequently and strategically partnering with senior lenders, GB Merchant Partners can provide companies with enhanced liquidity through the junior secured “Tranche B” loan product. As the investment management affiliate of Gordon Brothers Group, GB Merchant Partners has the benefit of an unmatched understanding of asset values and business operations – an understanding gained through the appraisal and sale of over $40 billion worth of assets each year. This enables us to extend beyond standard advance rates while assigning value to brands and other non-traditional assets against which lenders often are unwilling to finance.
- Enterprise Value Loans. At GB Merchant Partners, we take a strategic partnership approach in providing enterprise value loans to companies in order to facilitate acquisitions, leveraged buyouts, recapitalizations and growth strategies. By capitalizing on Gordon Brothers Group’s sector-specific knowledge and 100-plus years of experience in understanding the underlying value of a business, we can structure enterprise value loans that meet a company’s liquidity needs and growth objectives. We target middle-market companies with brand equity, proven management, a strong market position and sustainable cash flow.
Debt Financing for Special Situations
Corporations often have difficult strategic challenges that are not always met by traditional lenders. GB Merchant Partners uses its knowledge of various asset classes and industries to structure creative solutions for companies in some form of transition. Often, a "Special Situation" requires a lender with a sophisticated approach that can take the time to understand the company, the competitive landscape and financial structure, and related issues facing the company. GB Merchant Partners combines over a century of experience with its global reach to work with management and investors to arrive at financial solutions that work.