Concord provided a $35 million senior secured revolving line of credit to refinance existing debt and support the working capital needs of a wireless telecommunication company.

Client: A private-equity backed company headquartered in the Southern U.S., specializing in mission-critical construction, maintenance, and cellular tower upgrade and FTTX infrastructure solutions for the telecommunications industry. These solutions include the virtual manufacturing and distribution of custom cabling and interconnect solutions, and the distribution of consumable construction materials to telecom general contractors.

The Engagement: The Company is expanding its geographic footprint and product portfolio to increase customer support and operating flexibility, and to decrease lead times. Management has made investments in the Company’s operating and technology infrastructure to help position the business for growth during a period of rapid expansion in the wireless and broadband telecom industry, driven by exponential growth in data demand and internet access. As technology continues to advance and consumer and enterprise demands evolve, carriers are required to deploy substantial amounts of capital to build out their networks to satisfy evolving technological requirements and customer expectations. Increased data and the associated buildout of the 5G network and FTTX networks are expected to drive long-term network upgrade spending.

The Company has multiple attractive growth levers through its existing customers, and a range of new customer opportunities to further diversify the business. To take advantage of these, the Company conducted a formal search for a Senior lending partner who understands the telecommunications industry, and that could refinance its current debt and provide sufficient working capital as the business scales.

The Concord Close: Concord was able to quickly help the Company navigate its options and find a seasoned lending partner. Concord promptly sourced several proposals, drawing on its 100+ years of collective corporate finance experience, 95% success rate closing deals, and deep relationships with a wide spectrum of nationwide lenders, to arrange a creative and structurally favorable senior revolving credit facility for the Company.

Concord successfully closed the transaction in 9 weeks.

The Results: A $35 million asset-based facility with ample availability and the flexibility to support the Company’s future and achieve its growth objectives.