Case Study – Recapitalization
Sovereign Business Forms, Inc., based in Houston, Texas, is a full-service printer of quality, custom business forms and checks sold exclusively to the trade or wholesale distribution channel. The company specializes in producing forms that are needed to meet time sensitive or very short lead times of its customers.
Management had approached its long-term principal institutional investor, Equus Total Return, Inc., about repurchasing their ownership and recapitalizing the Company. Anderson LeNeave was engaged to arrange senior debt and mezzanine financing to facilitate the transaction.
Anderson LeNeave contacted a focused group of regional and national senior lenders, one-stop financing sources, uni-tranche lenders and mezzanine funds and received numerous financing proposals
Anderson LeNeave originated and structured $11.85 million in senior and subordinated debt financing with Fifth Third Bank, which allowed management to recapitalize the Company and own 100% of the outstanding stock on a fully diluted basis