SSG Capital Advisors acted as the exclusive investment banker to ITG Communications, LLC ("ITG" or the "Company") in the placement of a financing package which enabled ITG to refinance existing indebtedness and generate additional liquidity for growth. The transaction closed in February 2016.
Headquartered in Hendersonville, TN with service locations throughout the country, ITG is a national provider of fulfillment, construction and project management services to the cable and telecommunications industries. The Company manages permanently outsourced operational activities in specific markets, including new customer installations, upgrades, service calls, dispatch and warehousing. Furthermore, ITG's construction divisions support the cable and telecommunications industries' outside plant project needs. Services include aerial and underground drops, fiber backhaul, aerial construction, directional boring and trenching, and MDU wiring.
Following the acquisition of the current operations in early 2014, the management team upgraded the existing operations with drastic overhauls and re-training of the technician workforce. While achieving significant growth in existing locations, the Company continued to launch new locations and explore growth opportunities through acquisitions. In mid-2014, the Company acquired its telecommunications construction division, which allowed it to diversify service offerings among a neighboring industry and expand its customer portfolio. With the growth in fulfillment locations and the diversification within the construction businesses, the Company has continued to improve operational performance. ITG believes it is now at an inflection point where operational initiatives combined with revenue growth are anticipated to drive consistent profitability.
SSG was engaged to refinance the Company's credit facility and secure additional capital in order to properly capitalize its balance sheet and fund its growth strategy. SSG solicited interest from traditional banks, asset-based lenders and commercial finance companies. After receiving multiple term sheets, the Company selected Siena Lending Group LLC as its new lender.
Other professionals who worked on the transaction include:
- Jonathan Motley of Safford Motley PLC, counsel to ITG Communications, LLC;
- Lawrence F. Flick, Jason I. Miller, Krishana L. Pleasant and Ritika Kapadia of Blank Rome LLP, counsel to Siena Lending Group LLC;
- Robert A. Kargen of White and Williams LLP, counsel to prior senior lender; and
- Jack Teitz and Nicholas W. Arrington of Compass Advisory Partners, LLC, financial advisor to ITG Communications, LLC.
SSG Contacts on this deal:
- Mark E. Chesen, Managing Director
- Neil Gupta, Vice President
- Matthew J. Arden, Associate
- Brett E. Kravitt, Analyst
SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. We provide our clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation and strategic advisory. SSG has a proven track record of closing over 300 transactions in North America and Europe and is a leader in the industry.