SG Credit Partners provided a $3.35 million loan to a pharmaceutical products company structured primarily around the founder’s personal assets (real estate and marketable securities). SG’s speed to close allowed the Company to close the asset purchase and begin rebuilding the revenue base back to historical levels. SG’s facility is viewed by the Company as bridge financing until a broader capital facility can be raised.

Before SG became involved, the Company had agreed to purchase four prescription pharmaceutical products using debt financing with an alternative lender. Due to capital raising issues, this lender defaulted on its financing obligation, which eroded the seller’s confidence that the deal would be finalized. When SG was introduced to the Company, the seller was fatigued and highly motivated to consummate the transaction within a two week period or was prepared to walk away. Additionally, the Company’s senior management did not want to risk losing the opportunity to acquire the assets at an attractive purchase price. Given the Company’s pro-forma revenue level was below SG’s investment criteria, SG looked to the personal balance sheet of the founder to structure a transaction and execute within the short timeframe.